[Peakoil] FW: Canberra slashes solar power rebates FYI

[Adrian Whitehead]

Canberra slashes solar power rebates 
By Louise Williams . The Age 
January 16, 2006

 

THE Federal Government has slashed solar electricity rebates to community
organisations and schools and will phase out financial incentives for
residential and commercial solar power installations by the middle of next
year.

The Australia Greenhouse Office, which offers cash refunds to home owners,
community groups and developers installing photo-voltaic (PV) panels to
generate electricity, quietly halved the maximum rebate to community
organisations on January 1, from $8000 to $4000. Rebates available to
private home owners will be gradually reduced until the program is closed in
2007.

Vice-president of the Australian Business Council for Sustainable Energy,
Mark Twidell, said the rebate was providing the stimulus for the solar power
industry. He said industry representatives would seek talks with the Federal
Government over the rebate's future.

Installations of PV systems in Australia's cities declined markedly from
2003 when rebate levels to home owners were first reduced using the same
$4000 cap. Solar-generated electricity is free and emits no greenhouse gas
emissions, but PV systems are expensive and a considerable investment up
front. Owners of PV systems can sell their power into the electricity grid,
but are currently paid the same price as for power generated in cheaper
coal-fired power stations.

"If there is any single measure that has kept the solar industry going here
and kept expertise in Australia, it's the PV rebate," said Chris Hart,
manager of PV installer EcoSouth Solar. The AGO says the Federal
Government's new $75 million Solar Cities program will replace the rebate.

Under the Solar Cities initiative, four locations will be chosen around
Australia to demonstrate solar technology and to trial new policies to
encourage investment in and use of renewable energy.

"Solar Cities is an excellent project and there is genuine intent and real
action on the part of government," Mr Twidell said.

But, the small Australian solar industry fears stagnation if the rebate ends
before Solar Cities is implemented. The Solar Cities program also limits
benefits for solar use to the four as yet undecided urban locations, meaning
individuals wanting to reduce their own use of coal-fired energy outside the
selected areas will face higher costs.

The Australian Energy white paper of 2004 recognised the potential value of
solar energy as well as current cost and pricing constraints. Solar energy
is produced on-site, so does not have to be delivered, and is produced
during the hottest weather, corresponding with peak power demand, mainly to
run air-conditioners.

Peak power is the most expensive for conventional power stations to produce.
Germany kick-started its domestic solar industry by assisting home owners
and developers to purchase PV systems and by paying a higher price to
purchase solar electricity, recognising its real value in alleviating
peak-load pressure on the electricity grid.

Mr Twidell, also regional manager of BP Solar, said demand for solar panels
from BP's Sydney factory was outstripping manufacturing capacity, but mainly
because of demand from Asia.

Japan, Thailand, South Korea and some European countries have adopted policy
incentives based on Germany's model. Solar Cities will consider similar
future incentives for Australia.


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