Means test clouds solar sales

Age
Thursday 15/5/2008 Page: 4

A DECISION to make it harder for households to receive an $8000 rebate for installing solar panels on their home was under attack last night, with one business claiming it had lost more than 30 clients in a day. Environment Minister Peter Garrett announced in the budget that from yesterday only households earning less than $100,000 would qualify for the rebate.

Energy Matters spokesman Markus Lambert said the means test would wipe out most of its solar panel sales in the nation's biggest cities, saying more than 30 contracts had been cancelled after people were told of the change, with about another 20 considering whether to continue.

Without the rebate, the out of pocket costs to put in an average solar panel system more than doubles from about $5000 to $13,000. The budget met election promises by dedicating $2.3 billion to tackling climate change, including "green loans" of up to $10,000 for 200,000 households to improve energy and water efficiency. But it delayed the start of a promised $500 million renewable energy fund until 2009-10 while comparatively accelerating spending from a similar fund dedicated to experimental "clean-coal" research.

Wayne Swan said climate change was "perhaps the greatest threat to our economy, our environment and our living standards in future generations." But Australian Conservation Foundation president Professor Ian Lowe said that while the Government had taken long-overdue steps to lift energy and water efficiency, it missed an opportunity to set a future climate change agenda by abolishing subsidies to the fossil fuel sector.

It has been estimated that the fringe benefits tax concession on company cars produces about as much greenhouse pollution as a medium-sized coal-fire power station," he said. Climate Institute Australia chief executive John Connor described the budget as a mild but promising start. "There's a few clouds... but you have to acknowledge there is daylight between this budget and the budgets of the last decade and a half," he said.