Mixed Messages On The Future Of Australia’s Solar Subsidy

Is there any real threat of the subsidy for home and small commercial solar power systems being thrown off a cliff – and very soon? It depends on who you listen to.

Yesterday was a busy day on Australia’s energy scene. First, the Coalition party room approved the National Energy Guarantee although there were some holdouts. Then in the evening, Minister for the Environment and Energy Josh Frydenberg held a telephone meeting with NEG jurisdictions that resulted in agreement to release for consultation the National Electricity Law (NEL) amendments that would implement the Guarantee.

However, Labor states remain anything but totally on board, with ACT Minister for Climate Change and Sustainability Shane Rattenbury saying  issues raised about the National Energy Guarantee were “simply falling on deaf ears“.

Among all this NEG activity, the Australian Competition and Consumer Commission has been busy peddling its suite of recommendations on electricity affordability to the Nationals and Liberals. These recommendations include the premature axing of the Small-scale Renewable Energy Scheme (SRES), and with that, Australia’s solar subsidy. This would be a very bad idea, and not just for those wanting to install solar panels.

There’s a fear such a move may be weaved in among all the NEG hullabaloo.

So, where are things at right now? It’s still very unclear.

The Smart Energy Council Says..

“The Prime Minister confirmed that all the ACCC recommendations would be implemented. This includes the recommendation to scrap the Small Scale Renewable Energy Scheme (SRES).”

The SEC says that despite its calls for clarity on this point, the government has not ruled out immediately scrapping the scheme.

The Clean Energy Council Says..

“.. common sense has prevailed and the Coalition party room has ignored the ill-considered and unjustified proposal to abolish or change the Small-scale Renewable Energy Scheme (SRES). “

However, the CEC also states the ACCC’s recommendation to change the SRES may arise again as discussions over energy policy progress in the time ahead.

Conflicting messages aside, it does seem there is a threat even if it isn’t a clear and present danger. But what the Government may want to do and what it’s allowed to could be two very different things. Perhaps the SRES may just be held as a trading card for the Government to gain other concessions. Given solar’s popularity, scrapping the SRES certainly wouldn’t do the Turnbull Government any favours among many voters.

If you’re considering going solar at some point, it would be wise keep a close eye on the situation to try and ascertain how it may pan out. The subsidy (aka solar rebate) can knock thousands off the cost of installing a system, so it’s something you don’t want to miss out on – but you also don’t want to rush a purchase decision as that could result in buying a system that doesn’t meet your needs.