Australian Solar Hot Water Rebates – Major Processing Delays

The Australian Government has reported considerable delays in the processing of solar hot water rebate payments; stating it may take up to "several weeks" longer than the usual eight-week payment time frame, based on the date of acknowledged receipt of application.

The Australian Government has reported considerable delays in the processing of solar hot water rebate payments.

According to a statement posted on the Environment.gov.au site, payments may take up to “several weeks” longer than the eight-week payment timeframe, based on the date of acknowledged receipt of application. Following payment, rebate funds may take 7-10 days to appear in a recipient’s nominated bank account.

However, as of this morning, the Department reports it is currently processing rebates for applications received on Wednesday 23 December 2009.

According to Max Sylvester, co-founder of national solar solutions provider Energy Matters, “We have been told of one customer who we installed a solar hot water system for in late December that they will probably not see a payment made into their account until the end of May – 5 months.”

The Department says it is implementing measures to address the delays as soon as possible.

“These types of issues really don’t help push renewable energy forward in Australia. The Government cut back the amount of the Federal solar hot water rebate recently which is disincentive enough; and now this. It impacts negatively on consumers and it impacts on the Australian solar industry.” said Mr. Sylvester.

Major solar hot water rebate changes were announced by the Federal Government on February 19, 2010. Federal rebates of up to $1600 were slashed to $1000 maximum for solar hot water systems and up to $600 for heat pumps installed to replace electric storage hot water systems in existing privately owned homes. Additional state-level incentives were not affected with the exception of Queensland, which suspended its own Solar Hot Water Program indefinitely as a direct result of the Federal cuts.

“This latest situation with rebate processing certainly isn’t going to encourage people to make the switch to solar hot water. As water heating is one of the most energy and emissions intensive exercises in the average household, the government should be pulling out all the stops to see a solar hot water system is installed on the rooftop of every Australian home.” stated Mr. Sylvester.

According to information on the Energy Matters web site, electric and gas hot water systems account for approximately 20% of a household’s greenhouse gas emissions. By installing a solar water system, households can dramatically reduce these emissions and also save up to 75% on water heating costs.

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