Solar panel businesses cry foul

Hobart Mercury
Saturday 17/5/2008 Page: 5

THE solar industry has warned the Federal Government's means test for a rebate on solar panels will stifle the uptake of renewable energy. Orders with local installers have already been cancelled following Tuesday's Budget decision, in which households earning more than $100,000 will no longer be eligible for the $8000 rebate on photovoltaic systems. Environment Minister Peter Garrett defended the decision, saying it would ensure the subsidy went to people who really needed it.

But the industry said the policy appeared to be aimed at saving money and would put solar energy out of reach for everybody. "From my experience, it is people with spare income that can afford to install these systems," installer Brett Carter said. He said a homeowner earning less than $100,000 would struggle to afford even the subsidised cost of a typical $16,000 to $24,000 system.

"I would say at least 60 per cent of my business would be in the category that will no longer be eligible. "It will have a huge impact on the industry and it doesn't make sense because surely we should be encouraging people to be as energy efficient as possible." Kyocera, one of the country's largest solar cell manufacturers, predicted the decision would result in a catastrophic 65 to 90 per cent downturn in the industry.

Those fears were confirmed by Tasmanian installers and distributors contacted by the Mercury this week. Jessups Retravision in Launceston had two cancellations a day after the Budget. "We are talking $16,000 and $27,000 worth of orders we have already lost this morning as a direct result of this decision." solar cells manager Colin Mendoza said.

Richard Benjamin is building an energy efficient home on the Eastern Shore using solar passive principles, double glazed windows and internal and external insulation throughout. He had hoped to install solar panels to take the house almost entirely of the grid but lie was relying on government assistance to offset the significant up-front cost. "Solar was the final step but without the rebate I am much less likely to consider extending my mortgage even further to do what I wanted to do," Mr Benjamin said.

He said the Federal Government should be making it easier, not harder, for people to make their homes energy efficient. But Mr Garrett defended his Government's green credentials. "This Budget also includes other solar measures including a Green Loans Plan under which 200.000 Australian families will be able to access low interest loans to help with the up-front costs of installing solar technologies and other water and energy savings technologies," he said.

"And under the Solar Schools Plan more than 9000 Australian schools will be able to install solar technology as well as additional water and energy saving measures." The Budget decision prompted the Tasmanian Greens to call on the State Government to introduce their own subsidy for all householders.