Changes to solar credits ‘not unexpected’

The Federal Government has announced the solar credits multiplier would be reduced a year earlier than expected, just one week after Australia’s largest solar power provider opened an outlet in Bunbury.

Solar Shop Australia, which was officially launched at the Homemaker Centre on November 25, has called on the solar industry to stand on its own two feet after Minister for Climate Change and Energy Efficiency Greg Combet said the rebate would be reduced from July 1 next year.

The scheme is set to be phased out completely by 2014, with incremental reductions taking place over the coming four years.

Solar Shop Australia State manager John Broadway said although consumers would face higher upfront costs when installing solar power on their homes, the long-term financial and environmental benefits still stacked up with or without government incentives.

‘‘We’ve already seen the Federal Government pull the $8000 rebate in June last year and just last month the New South Wales Government significantly reduced its feed-in tariff so there’s a lot of change taking place at the moment,’’ Mr Broadway said.

‘‘While the Government incentives have been a fantastic way to introduce thousands of Australians to solar power, the time has now come for the solar industry to begin the migration to survival without relying on such lures.

‘‘This has always been the plan and it is reassuring to see the transition beginning to happen and in an orderly fashion.’’

Mr Broadway emphasised that the changes to the solar credits scheme were not unexpected. With the new changes, the reduction of the Renewable Energy Certificates (RECs) multiplier will increase the average upfront cost of a solar power system by about $1200 by July.

Depending on the unit’s size and production, installing a grid connect s o l a r power system can save homeowners as much as $70,000 over its lifetime.

Mr Combet said the solar credits multiplier was being reduced in recognition of significant reductions in the cost of solar panels.

He said demand for solar installations had also increased rapidly, as the out-of-pocket cost to households had dropped and State and Territory feed in tariffs providing additional support to households.

‘‘This reflects the original intention to phase out the multiplier at a steady rate, as the cost of installing solar systems is expected to decline further over time,’’ he said.