Jobs threat for solar firms kept in the dark - Uncertainty hits industry expansion

Age
Thursday 18/6/2009 Page: 7

Solar panel retailers are preparing to cut jobs and halt expansion plans because of uncertainty over the Government's solar credit program. Retailers contacted yesterday said they would have to collectively review the position of hundreds of staff in their call centres and administration because there is no guarantee the solar credits program will pass the Senate next week, delaying its process for at least two months.

Replacing the $8000 rebate that was abruptly withdrawn last week, the credit program is part of the Government's renewable energy target legislation currently before Parliament. The legislation has become embroiled in a political dogfight after the Government linked industry exemptions from the target to the passage of its emissions trading scheme, which is likely to be rejected by the Senate next week.

Simon Schauble, chief executive of NuSolar, one of the nation's largest solar retailers, said he would have to retrench 60 people if the passage of the bill remained uncertain. Mr Schauble added that he would halt recruitment plans for another hundred positions if the fate of the credits program remained in limbo.

The biggest issue is it is stalling momentum in the industry," he said. "We had plans to put on hundreds of people over the next year but we have stopped that until we know what is going on." Paul Wilson, executive director of retailer Clear Solar, said if the legislation does not pass next week he would reconsider the positions of 80 employees.

Chief executive of the Clean Energy Council Matt Warren said a quick survey of members yesterday revealed that solar retailers would shed hundreds of jobs across Victoria if the legislation is delayed. "The Government promised a smooth transition for the solar industry between the rebate and credits system, and the chances of that have now evaporated," he said.

The Opposition was supportive of the renewable energy target legislation, which will mandate that 20% of electricity must cone from renewable energy by 2020, until it was revealed partial exemptions for trade-exposed industry would not be granted until the emissions trading scheme is passed.

The Opposition will attempt to ' decouple" the target and trading scheme with a Senate amendment but are split in the party room on whether to vote for the bill if that amendment fails. Opposition resources and energy spokesman Ian MacFarlane, and Nationals Senators Barnaby Joyce and Ron Boswell, are pushing hard to block the bill if it is not amended.

Climate Change Minister Penny Wong yesterday said renewable energy target legislation contained a provision to backdate the solar credit program to any solar panel sold after the end of the rebate program last Monday. "The Government is committed to passing this legislation," she said. "We call on the Opposition to act responsibly and support the renewable energy target."

It is understood the Government's Senate schedule has listed the renewable legislation bill as "desirable" but not "urgent" to pass next week, which means it will sit behind other bills, including the emissions trading scheme, in order of priority.