After a couple of months of Australia’s solar industry being left in the dark in regards to rebates, the Solar Credits scheme, part of the Renewable Energy Target which in turn was previously tied to the highly controversial Carbon Pollution Reduction Scheme, has finally been written into law.
After failing to push the CPRS through the Senate last week, the Rudd government finally gave in to pressure to decouple the RET legislation early this week; allowing it to be passed in the House of Representatives on Monday night, then in the Senate a short time ago.
This means that funding will be made immediately available to service rebates under the Solar Credits program, a situation that many thousands of Australian households were waiting on before investing in a home solar power system.
Unlike the previous rebate, the Solar Credits program is not means tested and most home owners, businesses and community groups will be eligible for the scheme. Off grid solar power installations will also be covered. Solar hot water rebates remain covered under separate programs.
Credits issued under the program represent the equivalent of up to $7,500 in price reductions on a 1.5 kilowatt solar power system, depending on where in Australia the system will be installed.
The last two months have been challenging for the industry and very frustrating for households wanting to lessen their carbon footprint by installing a solar power system. After the sudden end to the SHCP rebate, then the delay of the full rollout of the Solar Credits scheme, many providers found system order numbers crashing, to the point where companies were laying off staff. According to a recent industry survey, some providers experienced a 90% drop in installation orders.
While the passing of the legislation will be welcomed by the industry, which can finally start planning for the future, it must now undertake a major re-education campaign to raise awareness in Australian households that adding solar power to their home may again be within their grasp.
The renewed interest in solar power will also see a re-emergence of solar power scams and sales tricks designed to trap the unwary. To help raise awareness of these practices, national provider of solar power solutions, Energy Matters, offers a free consumer guide to buying solar power systems.
Further information:
Solar Credits program FAQ
