Canberra deals third body blow to solar industry - People off power grid to feel impact

Age
Tuesday 23/6/2009 Page: 3

PEOPLE in remote communities will pay more for clean energy after the Federal Government abolished a program aimed at making solar and wind more attractive than diesel power.

In the third blow to the solar energy industry in as many weeks, the Government yesterday called an immediate halt to a program that covered up to half the cost of setting up clean power sources in areas not connected to the electricity grid. The announcement in an email to companies followed the abrupt cancellation of the $8000 rebate for rooftop solar panels three weeks earlier than planned.

As with the early end to the $8000 rebate, the Government blamed the cancellation of the Renewable Remote Power Generation Program on demand. Government spokeswoman Kate Pasterfield last night said the program's $300 million budget had been committed. Renewable energy retailers said the immediate cut-off meant hundreds of people would amiss out on funding for solar panels, wind turbines and batteries.

Clean Energy Council policy manager Russell Marsh said the program was supposed to continue until 2011. He said its future had appeared threatened since its budget was cut by $42 million in last year's budget. "Now if you haven't got an application in the system, it would make sense from a cost perspective to continue using diesel," he said.

Muriel Watts, from the University of New South Wales school of photovoltaic and renewable energy engineering, said the program had been vital in setting up advanced schemes such as Bushlight, which aims to boost sustainable energy use in small indigenous communities. "We are never going to grid connect all our far-flung parts of Australia so having low-cost, good, reliable technology out there is always going to be important," she said.

Opposition climate change spokesman Greg Hunt said companies had told hint they would lose up to $1 million a month in business and be forced to lay off staff. "Once again, solar companies around Australia have been sent into chaos," he said.

Meanwhile, the Federal Government will consider placing an "interim greenhouse trigger" in its national environment laws until an emissions trading scheme conies into effect. An environment department source said the trigger would be proposed by a panel of five independent experts in a discussion paper next week as part of an official review of Australia's national environmental laws.

The trigger would be "interim" and would be removed if an emissions trading scheme started in Australia. The proposal would automatically refer large projects that emit high amounts of carbon for an environmental assessment by Environment Minister Peter Garrett's office. It is not yet known how the trigger would fit into the existing laws if eventually accepted by Mr Garrett and cabinet. The Government's carbon trading legislation remains stalled in the Senate after the Opposition yesterday used several tactics to delay the vote.

• Rebate plan for communities not on grid abolished.
• Demand for rebates has used up the allocated funds.
• Solar industry could lose millions and have to lay off staff.