Solar companies seek rescue plan

Hepburn Shire Advocate
Wednesday 11/6/2008 Page: 5

A Daylesford business has joined the call for urgent action to rescue the solar energy industry. Leading solar companies have urged the Federal Government to introduce measures to support the sector following the shock Budget announcement that solar rebates would be means tested. The solar rebate is now restricted to households that earn less than $100,000 a year.

EcoProperty managing director Catriona MacDiarmid said the means test was a big disincentive for consumers and her business would suffer from the decision. The Daylesford branch of EcoProperty helps people to buy, sell, design and build houses that promote sustainable living. Our business is about helping people make their homes reliant on solar energy so it's going to make it tough," Ms MacDiarmid said.

"From our point of view as a country we should be leading the way in providing alternative energy options and this is sending the wrong message." Ms MacDiarmid said it was too early to notice a drop in sales, but with less concessions home owners would avoid installing solar energy equipment.

"The people with solar power in this region aren't going to have to sell their houses tomorrow but we certainly will see the effect by the end of the year." International renewable energy company Conergy director Rodger Meads said a delegation of four companies met with Environment Minister Peter Garrett in Canberra last week and outlined the damage that the government's decision to means test the solar rebate was starting to have on more than 300 small businesses active in Australia's solar industry, including Daylesford EcoProperty franchise.

"Our delegation pointed out that this situation was urgent. A mass of cancellations kicked off immediately after the government's announcement and was now being followed by job losses and business closures looming," Mr Meads said. "The group urged the government to abolish the $100,000 means test and presented a way forward with measures that would achieve the government's objective of slowing down the uptake of this successful program. It would do this in a way that would maintain industry skills and capability and ensure an ongoing, consistent level of investment, jobs and industry development for the industry, he said.