Solar program cut pours cold water on clean energy job prospects

www.cleanenergycouncil.org.au
29 Feb 2012

The clean energy industry says the unexpected cut of a key government solar hot water program late yesterday will put jobs under threat and make it harder for people to save on their electricity bills. Clean Energy Council Acting Chief Executive Kane Thornton said solar hot water systems and heat pumps were the cheapest way to heat water in people's homes over the life of the system.

"This decision will immediately affect sales and will put more than 1200 manufacturing jobs and 6000 installation, sales and back office jobs in jeopardy. This industry has been struggling with the effects of a high Australian dollar just like the car industry, just like the steel industry and just like other home grown manufacturing industries", Mr Thornton said. "Cutting this program without warning in the middle of a financial year is yet another example of stop-start policy making that continues to plague the entire clean energy sector. It has given the industry no time to prepare and makes business planning almost impossible".

Mr Thornton said water heating was one of the most energy intensive activities in the average Australian household, accounting for about a quarter of all energy use. "Solar hot water systems are one of the best ways for households to reduce steadily rising power bills over the long term, but have a higher up-front cost than other types of technology. "Without the assistance under the Renewable Energy Bonus Schemes, families and home owners who are hurting from cost-of-living expenses will buy cheaper hot water systems that cost them more in the long run and may emit higher rates of carbon pollution.

"The Commonwealth has committed itself to supporting a ban on inefficient electric hot water systems, which is an important climate change policy, but it can't be implemented in isolation. "Other programs needs to be introduced to help struggling families to purchase solar hot water systems or heat pumps, and to support the industry as it adjusts to a lower level of assistance.

"This is a decision that pours cold water on the prospects for local clean energy jobs in an industry that is navigating a difficult global financial climate just like everybody else", Mr Thornton said. The amount of energy saved by solar hot water systems and heat pumps installed in Australia would power the equivalent of almost 300,000 average homes.