Federal Government Cuts Photovoltaic Industry by 75%
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| PV Media Release.pdf | 59.18 KB |
The Federal Government's latest budget has announced that the PVRP Photovoltaic Rebate Program will now be means tested. Rebates are no longer available where household taxable income exceeds $100k per annum.
Approximately 900 applications per month have been received by the Government this year, with close to 1MW of PV installed each month through the program. To sustain this level of take-up, approximately $80 million of funding is required annually. By contrast, the Federal Government has committed $45 million over the next two years, representing a slow-down of the industry to about a quarter of its current size.
The Sydney Energy Cooperative has installed over 35 systems in the past 6 weeks. Of these, over 80% would not be eligible for the rebate under the new conditions. The solar installations carried out by the Cooperative are expected to continue at current rates for the next 6 weeks before reducing in number. The prices on the website for will remain valid for customers with household income below 100k.
There are several reasons why a means-test is not a logical solution to ensure that photovoltaics are given to those who most need it:
- When richer families receive a rebate for a PV system, everyone receives the benefit of extra renewable energy displacing the burning of coal. Like it or not, they are doing everyone a favour.
- The household that receives the rebate and the PV system does not make a financial gain for themselves. In fact, the rate they pay for electricity is generally higher with a solar system. Therefore, it is not sensible to say it is inequitable to allow rich families to receive solar panel rebates.
- At the current level of rebate, most low-income households would consider photovoltaics unaffordable, even with the rebate, at $4000-7000 for a 1kW system to cover 25% of their electricity bills.
- Families that earn over $100k per annum still struggle to pay for the upfront cost of solar panels, at $12000-$15000 for a 1kW system.
- The rebate has only ever been available to home-owners - already excluding householders with lower incomes. The government does not appear interested in changing this.
Despite the negative aspects it will certainly have on the photovoltaic industry, the Sydney Energy Cooperative will make the most out of the new situation, increasing our focus on making renewable energy even more affordable for low-income households.
For further details on the PVRP refer to: http://www.environment.gov.au/
A press release from Peter Garrett of the Labour Party, is attached.
