Solar cuts a threat to jobs

Herald Sun
2 September 2011, Page: 21

A CUT in the subsidy to Victorians feeding solar power into the electricity grid could cost hundreds of jobs, most likely in regional Victoria, the clean energy industry has warned. The solar feed-in tariff has been cut from 60¢ a kW to 25¢. The 50,000 people already participating in the scheme will not be affected and will still receive the higher rate.

People who have paid a deposit for a solar system or those yet to submit paperwork must do so by September 30 to receive the 60¢ rate. Some solar companies have indicated they would abandon plans to invest in Victoria if the rate was less than 40¢. Clean Energy Council policy director Russell Marsh said he supported a reduction in the rate, but it should be between 35-40¢.

Mr Marsh said the 25¢ rate would dampen demand for solar power and therefore lead to significant job losses. "When you get to below 30¢ you're talking about hundreds of jobs lost in the industry", Mr Marsh said. "It's going to be regional areas that are probably going to lose most".

Mr Marsh said a solar feed-in tariff set at 35¢ would cost consumers $4.50 on their yearly power bills. Victorian Energy Minister Michael O'Brien said under the 25¢ rate participants would recover the cost of their solar power systems within about 10 years. Mr O'Brien said it was the second most generous feed-in tariff in Australia, behind Queensland. "It will mean less of an impact on the bills of families that don't have solar", Mr O'Brien said. "We are not prepared to see the electricity bills of pensioners and others who can't afford rooftop solar jacked up".

A review of the scheme by the Victorian Competition and Efficiency Commission is expected to start this year and report to Government early in the second half of next year. The Government announced this week it would change planning laws to give households the power to veto wind turbines within 2km of their homes.

Opposition Leader Daniel Andrews said the Government was obsessed with coal. "(Premier) Ted Baillieu is in love with brown coal", Mr Andrews said. "He hates wind power, and he's decimated that industry this week. "I fear for those people who work in the solar industry. I fear for those who've invested in the solar power industry".