Solar panel sales crisis

Adelaide Advertiser
Saturday 24/5/2008 Page: 27

SOLAR panel retailers believe renewable energy sales will reduce by up to 80 per cent because of the Federal Government's move to means test the solar panel rebate. Solar shops across Adelaide have recorded a reduction in interest and sales since the Government announcement in this month's Budget. They say the move does not encourage households to use alternative energy to reduce their emissions or produce their own green power. Households with an income of more than $100,000 now are ineligible for the $8000 rebate.

Average solar panel systems can cost up to $15,000. Solar SA recorded a $150,000 reduction in sales in the three days following the announcement. That would equal greenhouse gas savings of taking seven cars off the road permanently. Director Rob Jung said means testing was an insult to the environment.

"Most ordinary South Australians who have a mortgage earn a combined income of more than $100,000," he said. "These are our customers and the Government has just scrapped the incentive for them to go green. This is about the environment, not cutting the cost of energy to poorer people's homes." The Solar Shop also has lost 200 orders in the past week and predicts losing up to $2 million in sales each month.

Director Adrian Ferraretto said 80 per cent of the company's customer base were from a higher socio-economic background and no longer would qualify for the rebate. "solar panels aren't cheap and they do need a rebate. However, slapping on a means test is the wrong approach and it will damage the industry," he said. "Many people feel ripped off.

Kevin Rudd presented himself as a greener option." A spokesman for Adelaide Solar City said it was still analysing whether the decision would affect the program. Among the program's initiatives is a discount when solar panels are purchased by residents who live in the Playford, Salisbury, Tea Tree Gully and Adelaide council areas. He said one of the program's solar panel offers had sold out before the threshold was introduced. Lower income earners were expected to fill any shortfall in the Solar City program.