Tuesday, 28 November 2023

 Gaelle BROAD (Northern Victoria) (18:08): (618) My adjournment is to the Assistant Treasurer and relates to the policy black hole that appears to exist when it comes to the cost of insuring solar farms on neighbouring properties. Across northern Victoria there are plans for large-scale solar farms that may impact on surrounding farms. Constituents have raised concerns about skyrocketing insurance premiums and the risk of something happening on their property that causes damage to the neighbouring solar farm – for example, if they were found to have started a fire with a chainsaw or a slasher or a grinder and it spread and caused damage. If they were found to be negligent, they may lose everything they have. Current farm insurance is between $10 million and $20 million, so they may need to look to overseas insurers to obtain higher levels of insurance. It is clearly not enough when you consider developments like the Meadow Creek solar farm, with a proposed value of $750 million. Some farmers have been told that to obtain the right level of insurance cover, they will be facing a $50,000 rise in premiums each year.

The Australian Energy Infrastructure Commissioner published their observations and recommendations in the commissioner’s 2022 annual report. Within the report are sections titled ‘Consultation’ and ‘Neighbour agreements’, and this suggests that, amongst other things, the solar farm might want to set up a neighbour agreement which could include reimbursement for increased public liability insurance premiums levied at the neighbour due to the presence of the wind or solar farm. However, the report notes that most neighbour agreements are voluntary and it is up to the developer to propose and negotiate them with the neighbour. As plans for renewable energy projects pop up across the state – with new transmission lines, solar farms, lithium-ion batteries and wind projects – insurance matters are causing a lot of confusion and angst for surrounding property owners. This matter should not be left to the engagement of developers with local landowners. We need a consistent approach. The action I seek is for the minister to outline the steps the government is taking to address these entrenched issues for properties that neighbour renewable energy developments to ensure that farmers are not out of pocket.