With Prime Minister Abbott continuing to talk down renewable energy, it may be wise for households and businesses still considering going solar to take advantage of subsidies now while they are still available.
According to The Guardian, when asked this week about the scaling back of the Renewable Energy Target (RET), Prime Minister Abbott said:
“We have to accept that in the changed circumstances of today, the renewable energy target is causing pretty significant price pressure in the system and we ought to be an affordable energy superpower.”
This is a repeat of a view he expressed in November – and one we pointed out is quite incorrect. The Australian Energy Market Commission (AEMC) pegs the impact of the RET on power bills to have been around just 3 per cent of household electricity prices on average in 2012-13.
Australia can certainly be an “affordable energy superpower”, but renewables play a key role in achieving that goal and it has already been proven that renewable energy is reining in wholesale electricity prices.
Adding to the unclear future of solar subsidies in Australia is the uncertain nature of Direct Action. In addition to Direct Action’s “Million Solar Roofs” being limited to lower income households, there appears to be a bias towards solar hot water systems. While funding for the scheme will be available from 1 July 2014, the Terms of Reference are unlikely to be out until next year.
The Guardian says Prime Minister Abbott will be closely consulting with his Business Advisory Council on issues relating to industry competitiveness – which includes the cost of electricity. The Council is chaired by Maurice Newman, who The Guardian says has previously called for the RET to be abandoned and apparently supported a Landscape Guardians group opposing new wind farms in part of New South Wales.
It would seem that 2014 may be shaping up to be another year of battles for the renewable energy industry and its supporters – but one thing that has shone through during skirmishes in the past is Australians love solar panels.
Analysis released by SunWiz early this month shows the nation has 3 gigawatts of solar capacity – 1.2 million homes now have solar panel systems – approximately 14% of dwellings in Australia.
