Solar plans go cloudy - Confusion over end of rebate

Sunday Tasmanian
Sunday 14/6/2009 Page: 23

THE $8000 solar panel rebate ended last week, three weeks earlier than expected, leaving thousands of consumers worried they may have to cancel their orders for solar panels. June Jung, from Corndale near Lismore, ordered a two panel system at a cost of $12,000, but she got her paperwork in a day late. "If we don't get the rebate, we won't be able to afford it," she said.

According to the Federal Government, 80,000 households have taken up solar energy in the past 18 months, and there are 60,000 still in the pipeline who will get the rebate. Households in all states have also been told to brace for increasing energy costs, so many are wondering if solar is still worth the investment without the rebate.

Peter Milaras, of Balmoral in Brisbane, was keen to go solar but cancelled his quote after the rebate was axed. He also shot off a letter to his local member, Prime Minister Kevin Rudd. "Electricity is going up 15% this year and I thought it would offset my power bill and the $8000 rebate made it affordable." he said.

With the rebate, Mr Milaras would have only been $3000 out of pocket for the 1kW system he had in mind. "I'm away a fair bit for work too, so I thought feeding back into the grid would also offset my bill," he said. feed-in tariffs vary from 40c-50c/kW in each state. In Queensland, it is 44c/kW.

According to an analysis conducted by Choice, the average household uses 18kW hours of electricity per day and the most popular domestic solar panel is a 1kW system that produces nearly 4kW hours per day, or 20% of household consumption. A 1kW solar panel costs between $12,000 and $15,000. Two panels can cost up to $20,000.

"Solar is still the most expensive form of renewable energy and it takes 15 to 20 years for a system to pay for itself, so it's a big investment," said Elise Davidson from Choice. Mr Milaras doesn't think it's worth it without the rebate, but may still get a quote "down the track". Mr Rudd said the rebate would be replaced by a system of solar credits that would in effect be a subsidy of about 50% of the cost price at the point of purchase.

Confusion reigns on the subject of solar credits because it has yet to pass through legislation, but here are the examples given on the Climate Change website:

• A solar system in Sydney, Perth. Adelaide, Brisbane or Canberra will receive $5150 for a 1kW system and $7750 for a 1.5kW system. Melbourne and Hobart receive fewer renewable energy certificates because they have less sunshine, so less energy is produced.
• A 1kW system installed this year will receive $4400 and a 1.5kW system $6650.

Bernie Dumbrowski, from the Solar Shop, urged the Government to hurry up and make the new system clear. "Consumers are very confused and so are we. but we would also ask consumers to be a little patient for a few weeks until this is all sorted out." he said.