Stock image of solar panels

Yesterday, The Australian reported that rebates given to solar panels would cost households across the country an additional $200 per year. The government’s Small-scale Renewable Energy Scheme (SRES) provides up-front rebates for consumers who install solar panels. The cost of these rebates are then carried by all electricity users.

But the claim that this scheme will place significant upward pressure on electricity bills is misleading, the product of an often confusing and heavily politicised debate on electricity prices in Australia. What's going on here?