Solar industry again hit by snap Government cutback

The Federal Government has sent shockwaves through the solar industry for the third time in as many weeks, by scrapping a special renewable energy program aimed at rural areas.

The Government shocked the sector yesterday by announcing that the Renewable Remote Power Generation Program would be immediately closed to new applications, except in Western Australia.

The snap announcement comes just after the Government announced the early closure of the $8000 solar rebate, with the solar credit scheme designed to replace it delayed after the Government’s renewable energy target legislation was delayed in the Senate.

The Government says the RRPGP has been closed off to new applications due to higher than expected demand – the same problem that caused the $8000 rebate to be closed earlier than expected.

“Giving a notice period would have resulted in a rush of applications which would have exceeded the funds available,” a spokesman for environment minister Peter Garrett told The Australian Financial Review.

The solar industry was notified yesterday that as of 8.30am the RRPGP was closed to new applications. Climate change minister Penny Wong will meet with solar retailers tomorrow, who are concerned that the loss of rebates will make doing business even harder.

Guy Montgomery, general manager of Solar Xpress, says the Government is hurting the industry and the combined decisions mean prices for solar panels will rise.

“Prices will rise… this is going to make standalone solar panel systems more expensive for people,” he says.

“This decision will affect our business, and it’s going to slow us up. The Government’s really taken the razor to solar and it’s a bit mind boggling. What we want is some stability, because they seem to be kicking it quite randomly, and quite hard.”

Liam Hunt, communications manager for the Solar Shop, says the decision to scrap the program will hurt its 100+ regional customers who have already planned their solar systems.

“It’s not like the domestic grid scheme where you get the rebate and do the planning, with this you first do the planning and then get the rebate. We’ve been planning for months with some customers, and now this is the third disappointment in three weeks for the industry.”

Earnest Gavey, manager of the Solar Zone, says he has worked in the solar industry for over 20 years and that the sector is “constantly a political football”.

“A lot of the inquiries have just stopped. Not only is this bad for us, it’s really deceptive of the government as they campaigned on green energy. If you compare the amount of the subsidy to the amount they subsidise the coal and power industries, it’s absolutely minimal.”

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