Wednesday 3/2/2010 Page: 6
The solar energy industry could be forced into a yearly cycle of boom and bust by Tony Abbott's proposal to offer a limited number of customer rebates for solar energy each year, Australia's largest solar energy retailer has warned. Under the Opposition's climate change policy, a maximum of 100,000 rebates would be on offer each year as part of a drive to see an extra one million Australian households invest in solar electricity or hot water by 2020.John Broadway, WA manager of Solar Shop Australia, said an annual quota could cause demand to slump towards the end of each year as the rebates run out. "If the 100,000 systems are sold within the first six months of the year there will potentially be six months without sales," he said. Mr Broadway said while he welcomed the potential boost to solar energy, the industry would rather see a national feed-in tariff, which would pay customers for selling power back to the grid.
A feed-in tariff would allow the solar industry to invest confidently in manufacturing, without fears over fluctuating supply and demand or the "price distortions" associated with rebates, he said. Neither the Government nor the Opposition was heeding the industry's calls for the scheme, he said. Sven Stenvers, of solar firm Solar Unlimited, said the $1000 rebates would hurt the industry because they were significantly lower than payments offered previously to consumers. WA Sustainable Energy Association chief executive Ray Wills said a feed-in tariff would offer householders a better long-term incentive than rebate schemes, which are subject to change or cancellation.
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