Sun sets on generous solar rebates

Canberra Times
Tuesday 23/12/2008 Page: 3

Households earning less than $100,000 have just six months to install solar panels or they will probably pay thousands of dollars more. The Federal Government announced last week it would change its rebate for solar panels, and said all households would get "up to" $7500. The change was billed as good news, but it is fiendishly complicated. Now it appears the rebate will be worth considerably less than $7500.

This means any household earning less than $100,000 a year will have as mach as $3600 lopped off its solar rebate when the new scheme starts in July. But those earning more than $100,000 will do mach better. Under the current system, the Government gives a means-tested rebate of $8000 to any household earning less than $100,000 which installs solar panels. There is also a small, separate rebate.

The new system gives a non-means-tested rebate to all households, but it is tied in with the Renewable Energy Target scheme and the value of it will fluctuate. To make things more complex, different cities will get different amounts. For Canberrans and people living in other "warm zone" cities - Sydney, Brisbane, Perth and Adelaide - the rebate for households earning under $100,000 will drop from $9275 to $6374.

This is based on installing an average-sized 1.5 kW system, on current prices. For those earning above the threshold, government rebates will rise from $1275 to $6374. For people living in Victoria and Tasmania - the "cold zone" - the rebate for households on less than $100,000 will drop from $9093 to $5466. For households above the threshold, rebates will rise from $1093 to $5466. These calculations are based on data provided by solar panel manufacturer Conergy.

Managing director Rodger Meads said the value of the new rebate would fluctuate and he could not say exactly what it would be worth, but he drew some conclusions. "People over $100,000 a year ... will be better off, in my opinion," he said. It was a different story for households earning under $100,000. "On the preliminary figures today, they will be a little bit worse off. There won't be quite the same amount of money for them." But Environment Minister Peter Garrett's office says most Australians will receive about $7500.

"In the current market, the full value of solar credits for a 1.5 kW system would be around $7500 through most of Australia ... Sydney, Brisbane, Canberra, Adelaide and Perth," a spokeswoman said. "In Melbourne and Hobart, the value would be around 15% less simply because solar systems in these cities produce around 15% less energy." In Darwin the value would be more than $8000. It would be up to retailers to pass on the discount to consumers.