Govt rejects solar tariff amendment

Canberra Times
23 June 2011, Page: 6

ACT: Sustainability Minister Simon Corbell has rejected an emergency measure to save the household solar feed in tariff scheme, saying it would only offer false hope. Greens Speaker Shane Rattenbury introduced an amendment to the Government's legislation yesterday that he said would save small businesses in danger of going bankrupt over the scheme's ending. The Government abruptly ended an incentive scheme designed to encourage householders and small businesses to install rooftop solar power, and benefit the sustainable energy market.

At the time, Mr Corbell said the cap of 15 MWs had been reached far earlier than the Government had expected, but the medium scale scheme would continue. Mr Rattenbury's proposal would have rolled the household in with the existing medium scale scheme, which has not yet reached capacity. It would also mean all connections made after September 1 would be eligible for 75% of the rate, making the scheme cost neutral to Government.

Mr Rattenbury said yesterday he was in discussions with the Government and the Opposition over his proposal. But Mr Corbell rejected the Bill last night, saying it would damage the medium scale scheme designed to harness large rooftop spaces for solar power. He said he had been forced to take an estimated 6 MW of capacity from the medium scale scheme to honour existing commitments in the small scale sector.

"If we open up the medium sector, it will be fully subscribed by the end of the year, and then we'll be exactly where we are now", he said. "In simple terms, what Mr Rattenbury is offering is false hope". Mr Rattenbury said the small scale solar sector was caught by surprise by the scheme's abrupt ending.

"Everyone was bundling along, building up their skills and all of a sudden the minister's come along and said, 'It's over.' Mr Rattenbury introduced his amendment the day after about 100 protesters rallied outside the Assembly calling for respite for the industry.

David Payne, of Environmentally Friendly Products said axing the small scale scheme would devastate the industry and cost up to 200 jobs. He said the industry was not yet prepared to jump wholesale into the medium scale sector, which had different risks and demands to smaller schemes. A Liberals spokesman said the party had not decided whether to support Mr Rattenbury's proposal. "We are prepared to negotiate to assist the industry through a transition".