The last two days have seen a flurry of activity in the home solar power sector in Australia after the announcement from the Federal Government on Tuesday of the immediate end to the $8,000 SHCP solar rebate and the commencement of the Solar Credits program.
The industry was ill-prepared for the announcement as it had been operating under the firm belief that the SHCP rebate wouldn’t end until June 30. Many providers’ telephone systems were running hot on Tuesday and Wednesday as concerned and confused home owners sought clarification.
One of Australia’s largest renewable energy companies, Energy Matters, experienced their highest level of web site traffic ever on Tuesday when the company kept concerned parties around Australia updated through regular news updates on their site regarding the situation as it unfolded throughout the day. A Solar Credits FAQ on the Energy Matters site was also regularly updated.
Given the complexities of the previous rebate, the shock announcement meant that despite the best efforts of providers, many people qualifying under the old scheme missed out on submitting their documentation by the Monday evening deadline. Those people who would have qualified will still be able to receive a rebate under the Solar Credits program, but it will be a lesser one. However, the good news is that people who didn’t qualify under the old SHCP program will most likely qualify for a heavily subsidised home solar power system under the Solar Credits scheme.
While the government was heavily criticised for the lack of notice of the new program’s commencement, Ministers Penny Wong and Peter Garrett said that the June 30 deadline was never set in stone.
Minister Wong said of the sudden introduction of the new program, “What we are providing is a smooth transition”, but many providers would have debated that point as they worked deep into the night, the following day and will continue today in assisting clients with paperwork, updating systems and information.
Minister Garrett stated on ABC Radio yesterday: “We didn’t say that it would end on June 30 and we did say that we’d work with the industry to transition new arrangements.”
Greg Hunt, Shadow Minister for Climate Change, Environment & Water, cited several instances where the June 30 deadline was indicated, including a quote from a COAG communiqué in April, that stated: “Solar Credits are intended to commence from 1 July 2009.”
Mr. Hunt also said on 17 December last year, Mr Garrett was asked on the ABC’s PM program: “So the rebate and the means test will be phased out after the 1st of July next year in favour of the new system. Is that correct?” Mr Garrett is quoted to have replied: “That’s correct. From July the 1st, we will provide upfront assistance in the form of solar credits for new small-scale solar, wind and hydro renewables.”
Regardless of who said what to who and when, the old rebate system is gone and the industry and consumers are brushing off the dust from the last couple of days and accepting the fact that the brave new world of Solar Credits has now begun. While some Australian families have sadly missed out, through the new scheme many more Australians will now be able to play their part in reducing greenhouse gas emissions and reduce their electricity bills through installing a home solar power system.
