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Solar Rebate Scrapped

June 10, 2009

The sudden scrapping by the Federal Government of its Solar Homes and Communities Plan (SHCP) is disappointing and will stem the growing momentum in take-up of solar power by households across the country.

Moreland Energy Foundation (MEFL) Chief Executive Paul Murfitt said energy groups and householders had serious concerns about the program that is designed to replace the SHCP solar power rebate system. Until yesterday's sudden announcement that it would be scrapped from midnight, there was a clear expectation that the rebate would be phased out on June 30, with the introduction on July 1 of the Solar Credits Scheme.

"We had been swamped with calls from people wanting to take up the rebate before it is phased out," Mr Murfitt said. "This decision to end the program prematurely and without proper warning has stopped solar energy momentum in its tracks and left thousands of households stranded and confused."

"We understand and appreciate that the Labor Government allocated more than four times the original budget set by the Howard Government for the rebate, however the way it has been scrapped has caused much unnecessary confusion and worry for those intending to apply in the coming weeks. To be fair to those people, the Government should honour its commitment to maintain the rebate until the end of June," Mr Murfitt said.

Households that MEFL works with in the Moreland area and beyond know that one of the best ways they can seek to reduce their greenhouse gas emissions is by generating their own clean, green electricity from renewable sources such as small scale solar PV.

Mr Murfitt said the replacement of the SHCP rebate will prove a powerful disincentive to households at a time when global warming needs the strongest possible response from community and government. "The new 'Solar Multiplier' under the Solar Credits Scheme stops households from being able to contribute to the amount of renewable energy installed in Australia and actually reverses the impact of their investment," he said. "Households accessing the Solar Credits Scheme, as it is currently proposed, will actually be reducing the amount of renewable energy in Australia."

The Moreland Energy Foundation, in partnership with other environmental and community groups, is urging the Federal Government to review its policy framework for small scale renewable energy across Australia. It wants to see the implementation of a single, national gross-metered feed-in tariff to drive the uptake of small scale renewable energy in order that householders, businesses and communities can continue to make a material contribution to the issue of climate change.

More information

Please contact : Paul Murfitt

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