Previously, households and businesses could earn up to HK$5 per unit of electricity sold, but the rate has been cut from Wednesday to HK$4 per unit at most.
Speaking on a radio show, the environment minister said the rate adjustment won’t affect people’s overall returns.
“When we launched the scheme three years ago, there were few suppliers on the market. So the cost for people [to join the scheme] was high. But based on our data, the cost for people to buy power-generating products has since dropped by 30 to 40 percent,” Wong said.
“So the adjusted feed-in tariff rate is still very attractive, and people will not earn less than before.The new rate is also very favourable compared to other countries.”
Wong noted that participants that are already participating in the scheme can still enjoy the old rate, as officials hoped to encourage early participation.
But speaking on the same programme, Greenpeace campaigner Tom Ng said the rate cut would reduce the incentive for new players to join the programme, and this might slow Hong Kong’s progress in reaching carbon neutrality.
“It will take longer for people to get enough to cover the cost of installing such systems, so people will be less interested… We should not reduce the rate at this moment, because there isn’t that much renewable energy or solar power in Hong Kong yet,” he said.
“When the cost is lower than before, it is a great opportunity for the whole society to increase the use of renewable energy. The cost is lower, people are interested, and we should keep this momentum up instead of cutting the rate and reducing the momentum.”
Ng also said authorities should adjust the feed-in tariff rate based on Hong Kong’s renewable energy ratio, and consult the public and stakeholders during the decision-making process.
The government has received over 20,000 applications since the launch of the feed-in tariff scheme over three years ago.
Around 90 percent of the applications have been approved, and officials said they can generate enough electricity to support 90,000 families, which is around the number of households in Central and Western District.
