The Australian Solar Council (previously known as AuSES) has expressed serious concerns with regard to the Climate Change Authority’s (CCA) Review of the Renewable Energy Target Discussion Paper.
As we reported after the release of the paper, the CCA has suggested discounting the number of Renewable Energy Certificates (RECs) accompanying the purchase of home solar power systems; which would further reduce the subsidy available. This would be in addition to the final phasing out of the Solar Credits multiplier next year, already decided previously.
The triggers for such a reduction according to the Paper would be:
“The Minister’s decision should be based on, and proportional to, the following criteria: (i) any reduction in net system costs over the last year; (ii) electricity prices and whether the SRES contribution is greater than 1.5 per cent; and (iii) whether the average payback period of a small-scale system has fallen below ten years.”
The Australian Solar Council has labelled this a “terrible proposal” and one that actively discriminates against solar PV.
“In a country where we change house on average every 7 years, who would invest in solar PV on a ten year payback?,” says the Council.
“The solar industry, like any industry, needs certainty, and the Australian Solar Council will strongly oppose these recommendations. The public are also sick to death of the ‘solar coaster’ solar policy ride.”
The Council says it will put this view strongly to the Climate Change Authority at consultations in Sydney next week, and will continue to put this view to government and the Climate Change Authority over the next month.
The CCA’s recommendations follow an earlier call from the Productivity Commission to end all solar subsidies soon as practicably possible; a suggestion the Australian Solar Council also vigorously opposed.
With the storm clouds seeming to gather for remaining subsidies, households considering installing solar panels may find going solar now could be a very wise choice.
