AuSES: Government should reinstate solar hot water rebate

Following the government’s sudden announcement that the Renewable Energy Bonus Scheme will close, the Australian Solar Energy Society (AuSES) has called on the federal government to reinstate the solar hot water rebate, arguing that the decision will have a dire impact on the clean energy industry.

“The axing leaves householders and solar companies in the lurch, putting at risk more than 1000 jobs at companies that had planned for ongoing demand,” AuSES Chief Executive John Grimes said in a press release. “Another solar scheme shut down without notice, more solar jobs lost. That’s bad policy and bad process.

“The government is rightly focused on building a clean energy future, but it should not ignore our clean energy present. The leading solar hot water company, Rheem, has suggested the industry could halve overnight, leaving tens of millions of dollars’ worth of stock stuck in warehouses and puncturing a giant hole in our clean energy present.

“Water heating is the single largest source of carbon pollution for Australian families, accounting for around 23% of household emissions, so it makes sense to encourage Australians to invest in solar hot water,” he added.

“The Australian Government should be making it easier, not harder, for Australians to cut their power bills and tackle climate change. This very successful rebate program should have been extended, not axed suddenly.”

The Parliamentary Secretary for Climate Change and Energy Efficiency, Mark Dreyfus, issued a press release on 28 February announcing that the rebate scheme will close on 30 June 2012. Only systems installed, ordered or purchased prior to 28 February will be eligible for the rebate, which is $1000 for a solar hot water system or $600 for a heat pump hot water system. The government said it will continue to process applications lodged prior to 30 June.

The decision has been criticised by both the coalition and the Greens, with Greg Hunt and Christine Milne questioning the sudden axing of the rebate program.

Dreyfus said the government will continue supporting households making the switch to solar and heat pump hot water systems through the Small-scale Renewable Energy Scheme, in which the systems “are assigned a number of Small-scale Technology Certificates (STCs) and retailers usually offer an upfront discount on systems in exchange for the STCs”.