Changes to the Solar Rebate Crush the Solar Industry
June 16, 2008
The Federal Government recently announced changes to the former Photovoltaic Rebate Program (now called the Solar Homes and Communities Plan) that have crippled the growth of Australia's solar industry and made it harder for many householders to finance photovoltaic systems.
The rebate provides up to $8000 per household or $4000 for community groups to install solar panel systems; however as of May 2008 the rebate is only available where the gross annual household income is not more than $100,000. Since the announcement was made the solar industry has suffered massive losses - Beyond Buildings reported $1 million in lost business two days after the announcement and other companies are reporting mass cancellations of solar panel orders and redundancies.
MEFL is concerned that the Federal Government did not undertake adequate research to determine what an appropriate income threshold would be and has misunderstood the purpose of the rebate program, which is primarily to grow and expand the solar industry. The vast majority of households still need financial support to install solar panels, and setting the income threshold at such a low level means that most of those households who would be in a position to install solar systems will be unlikely to do so.
Further, this does nothing to support low income households as installing solar panels provides benefits to the whole community, not just the individual household. Even setting a means test at the same level as the Baby Bonus ($150,000) would enable the solar industry to grow and expand, which will help to bring the costs of solar systems down over time.
Environment Minister Peter Garrett has indicated that he is willing to consider adjusting the income threshold if the solar industry continues to suffer.
More information
Please contact : Anna Strempel
