It may have escaped the attention of some, but recommendations buried in a recent Productivity Commission report that would see an early end to the Solar Credits subsidy and other forms of support for home solar power systems have been noticed and opposed by the Australian Solar Council.
As we reported last week, the Commission has recommended a “phase out as quickly as practicable” subsidies for solar panels, plus “other forms of distributed generation delivered via feed-in tariffs and the small-scale component of the Renewable Energy Targets Scheme”.
The Australian Solar Council has firmly rejected the call by the Productivity Commission to abolish the Small-scale Renewable Energy Scheme (SRES).
“We all know that many more Australians want to install solar panels and solar hot water, but the upfront cost of these systems remains a significant barrier. That is why the SRES is so important and must be continued,” says John Grimes, Australian Solar Council Chief Executive.
“Demand for solar PV has reduced significantly since the solar multiplier was reduced on 1 July, and there are no signs that demand is picking up. The last thing the solar industry needs is more uncertainty.”
The Australian Solar Council is seeking direction and reassurance that the SRES and associated mechanisms are not under threat.
Mr. Grimes says his organisation endorses the view of Giles Parkinson of RenewEconomy who wrote recently that “until organisations such as the Productivity Commission get their mind around solar PV…then we cannot rely on them to make sensible recommendations”.
Under the current timetable, the Solar Credits multiplier is not due to be phased out until July 1 next year. If the Commissions draft recommendations were implemented, that could be brought forward to as early as towards the end of this year.
