May 28, 2008
MEDIA RELEASE
BUDGET CUTS
“What incentive is left to install
Solar PV systems?”
Since launching Modern Solar in November 2007 and dealing directly with the residential market, Modern
has found the public response to solar electricity overwhelming. Modern offices all over Australia have been
inundated with calls.
The main reason for the overwhelming response was the previous government’s commitment to renewable
energy by offering incentives to average Australians to install a Solar PV system on their homes. Whilst the
new government has made much fanfare about their commitment to global warming and signing off on
Kyoto, it appears that after their first budget their actions do not mirror their words.
With the Labor government’s first budget, an immediate restriction on the $8000 rebate incentive via a
means test qualification was introduced, not to mention unrealistic time frames for implementation of this
new rebate system. Many companies and customers have been left stranded, victims of the Labor
government’s overnight, instant effect, policy change.
Modern Solar Managing Director, Mr Ron Bayley states that the Labor government has potentially ‘missed
the boat’ with respect to the $8,000 rebate paid to home owners who made the commitment to go green
with a Solar PV system.
“The rebate was introduced to encourage all Australians, regardless of wealth, to install Solar panels and
help the environment by reducing energy consumption and carbon emissions. Now this rebate is only
available to lower income households who are less likely to be able to afford the out of pocket expenses?
The households that are more likely to be able to afford to go Solar now have little monetary incentive to do
so” says Mr Bayley.
Mr. Bayley also states that the wealthier households tend to use more energy and tend to buy larger solar
systems and so this was a real positive towards the previous government’s renewable energy targets.
The feeling from within certain Solar membership groups is that up to now the typical demographic of a
household likely to install a Solar PV system is outside the means test criteria to receive a rebate.
Modern Solar Managing Director, Mr Ron Bayley states that consumers appear to have really embraced the
‘think green’ attitude and genuinely want to help the environment. The problem is that many simply cannot
afford the upfront, out of pocket expenses, especially with the recent Reserve Bank of Australia interest rate
rises which have squeezed family disposable incomes even tighter.
“The government wants Australians to embrace a green attitude, but at the same time take away the
financial incentive for many to do so – it just doesn’t make sense” says Mr Bayley.
The introduction of low interest green loans was a positive move that most industry experts were happy with
as this had been raised previously as serious step in the right direction to assist households with the initial
out of pocket expenses. However this does not compensate for the restriction of the $8,000 rebate to
households who earn more then $100,000 per annum.
Modern Solar Managing Director, Mr Ron Bayley states that if this government is serious about getting
Australians involved in renewable energy then they must seriously re-think their stand on means testing the
rebate or come up with an equally enticing alternative – and quick smart.
Mr Bayley says “If they won’t budge on the rebate, then perhaps the Mr Garrett and his party need to
consider a federal ‘feed in tariff’ plan to provide consistency to all Australians and a monetary incentive for
people who sell their excess electricity back to the grid. 4 multiples based upon gross ‘feed in’ rather than
net have proven successful in other countries as it offers a more reasonable payback”
Electricity generated by a Solar PV system, free from the sun’s rays, is used to power items in the home
and reduce a home’s reliance on traditional coal fired electricity sources that continue to pollute our planet
with harmful greenhouse gases. Any excess electricity generated is fed back into the electricity grid and
used to power neighbouring homes, again reducing carbon emissions and greenhouse gases. If the
government is serious about assisting the environment then it must be offering Australians further
incentives to go green – not taking them away.
Do not take away the rebate yet Mr Garrett – build the industry, invest like our friends in California who
alone have initiated a $3.2 billion dollar investment into renewable energy and we will help build a
sustainable planet, this is just the beginning.
For more information please contact:
Lawrence Mallia -
The Modern Group
Ph: 02 8818 2200
Email: lmallia@modernnsw.com.au
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