Solar Panel Scheme : terminated and to cost taxpayers $440 million

Since 2000, the the Solar Homes and Communities Plan started out as the Photovoltaic Rebate Program offering $4,000. The program was changed in 2007 and was receiving by then an average 153 applications per week.

As part of the Rudd Government’s election commitments, the program was allocated $150 million to provide increased rebates of up to $8,000 to 15,000 homes over five years.

The number of applications for the rebate grew from 420 per week in May 2008 to approximately 6,043 per week in May 2009.

Then the  Government’s Solar Homes and Communities Plan (SHCP) has resulted in early closure of this program and the immediate introduction of the Solar Credits scheme.

The SHCP was scheduled to end on the 30th June 09. The abrupt termination of this program has taken the industry and householders by surprise. Only applications sent by 9th June 09 was accepted for assessment. The scheme was so popular that the government had to end it. It replaced that program with a Solar Credits scheme.

Still, we learned in October than over 64,000 applications for the $8,000 rebate were in the pipeline when Mr. Garrett announced the program termination in June !

So far, we learned that over 55,000 of those applications would be honored by the government. It means a total bill of over $440 million! Well over the $271 million set aside at the last budget to fund this scheme.

Those lucky enough to receive their rebates should be notified already.

For the others, they should have a look at the Solar Credits program.

The Solar Credits multiplier will offer up to $9,000 in savings depending on the size and location of installation and apply to new installations of small-scale renewable energy generators eligible under the scheme.

1. The Solar Credits multiplier will offer up to $9,000 in savings depending on the size and location of installation and apply to new installations of small-scale renewable energy generators eligible under the scheme.
2. Solar credits will apply to the first 1.5 kilowatts (kW) of capacity installed.
3. Generation from capacity above 1.5 kW will still be eligible for the standard 1:1 rate of RECs creation.
4. The multiplier credits will only apply to the first small-scale generation system installed at an address.