Dwindling solar demand could cost 3400 jobs

Despite two million Australian homes having solar installed, the phase-out of government support programs has seen demand drop off, a new report from REC Agents Association (RAA) shows.

The report, created by Green Energy Markets for RAA, shows that Australia installed more than one gigawatt of solar PV in 2012, making it the 7th largest market in the world. However, the country has seen a 22% drop in the amount of solar PV installed in the last 12 months.

From a high of more than 18,500 employees, more than 3400 jobs could be lost in the next 12 months, the report predicts.

The decline in the solar market has also led to a substantial fall in the cost of the Small-scale Renewable Energy Scheme (SRES), a key part of the Renewable Energy Target that helps Australian households install solar.

By 2015, the SRES will cost just $6.50 out of an average $500 a quarter power bill, but the cost is sharply reduced by the parallel reduction in the wholesale cost of electricity delivered by solar. The real cost of the SRES to households is just $1.90 per quarter, or just 0.38% of a typical household quarterly bill.

“The Renewable Energy Target has helped almost 5 million Australians install solar, making a material contribution to meeting our energy needs,” said Ric Brazzale, CEO of Green Energy Markets and president of the REC Agents Association.

“The government’s Million Solar Roofs program, in partnership with the Renewable Energy Target, has the potential to inject new energy into the solar market by helping low-income earners and renters install solar. There is simply no need to change the Small-scale Renewable Energy Scheme through a review of the Renewable Energy Target.”

“The Renewable Energy Target works,” said Fiona O’Hehir, CEO of Greenbank Environmental and vice-president of RAA. “It creates jobs, reduces emissions and doesn’t cost the federal Budget a cent. The Abbott government should reaffirm its strong support for the Small-scale Renewable Energy Scheme.”

The RAA is a national industry body representing companies that create and trade renewable energy certificates.

The full report is available from www.recagents.asn.au.