The Abbott government will soon release its terms of reference for another Renewable Energy Target review says the Australian Solar Council. Given the general vibe; it doesn’t bode well for remaining small scale solar subsidies.
As solar feed-in-tariff incentives are dialled down, the Renewable Energy Target is now the major form of support to the solar industry in Australia and for those buying solar panel systems.
“The future of the small-scale scheme for solar PV is in considerable doubt,” states Australian Solar Council CEO John Grimes.
“Last year several powerful and vocal opponents of the solar industry called for radical change to limit the uptake of solar PV.”
He says “those voices will be louder, stronger and joined by new voices that are likely to carry more sway in the review process.”
Perhaps indicating the extent of that influence, Prime Minister Abbott has already incorrectly claimed “renewable energy targets are also significantly driving up power prices right now”. However, the Australian Energy Market Commission (AEMC) estimated the Renewable Energy Target was only approximately 3 per cent of household electricity prices on average in 2012-13.
The Government’s own program to support solar, Direct Action, is yet to be realised, is narrower in scope and it’s feared it may be a case of giving with one hand and taking with the other – with the RET the victim.
“Changes to the Small-Scale Renewable Energy Scheme (SRES) will have a negligible impact on power prices,” says Mr. Grimes. “Don’t unfairly target our industry.”
The solar power industry currently employs more than 18,000 people in 4,500 small and medium businesses across Australia – many in rural and regional areas.
With Renewable Energy Target related support still providing subsidies of up to a couple of thousand dollars on solar panel systems and that support continuing after the review not something to bank on; the best time to go solar may be right now.
