NECA calls on government to stop killing solar jobs

The National Electrical and Communications Association (NECA) has called on both state and Australian governments to commit to stable policies to assist the flagging solar industry. The constant fluctuations in rebates and tariffs that have been imposed by government over the past few years, and in particular recent weeks, are the chief cause of the recent spate of solar businesses going into external administration in Western Australia, said General Manager of NECA Western Australia, Kyle Kutasi.

“Solar installation businesses cannot sell a product when the consumer themselves have little certainty as to how much it is going to cost them,” Kutasi said. “For example, the feed-in tariff in Western Australia has effectively been changed three times in the last year. Everyone knows that most solar power systems are not cost-effective without the subsidies, so why would a consumer commit to purchase one when they can’t be sure of the subsidy they will be getting?”

The Australian Government issues renewable energy certificates (RECs) to consumers who install solar systems. RECs will only be issued where the installing electrician is accredited by the Clean Energy Council (CEC). The CEC is a private organisation that sets its own rules and standards with minimal consultation with industry. The state government, through its retailer Synergy, provides persons who install small-scale renewable energy systems (SSRES) with inverters which aggregate less than 5 MW with a ‘feed-in tariff’ that reduces their power bills if they feed excess generation back onto the Western Power grid. This feed-in tariff has fallen from 60c per KWh last year to zero today.

Large solar installation businesses like Solar Shop have just this week placed themselves into external administration. “As a consequence of all the policy confusion, jobs are now being lost. Sales in the industry have fallen by over 50% since the state government announced the end of the feed-in tariff.

“Inconsistent and changing government policy contributes heavily to these people’s job losses,” said Kutasi.