Is solar under threat?

The federal government’s agenda towards the renewable energy industry in Australia is in the spotlight as reports indicate the Clean Energy Finance Corporation (CEFC) has been instructed to not only stop investing in windfarms, but also solar energy.

The Australian Solar Council claims the Abbott government has written to the CEFC directing it to stop funding for all household and commercial solar projects.

“A key focus for the CEFC has been innovative finance models that allow low-income earners, people living in apartments, small businesses, nursing homes and churches to get solar and slash their power bills,” said John Grimes, chief executive of the Australian Solar Council.

“By prohibiting the CEFC from investing in solar projects, the Abbott government is stopping the most vulnerable from slashing their power bills.”

Opposition Minister for Environment, Mark Butler has labelled the move a “war on renewable energy” and also said it will have consequences for employment and investment.

“Tony Abbott is broadening his assault on renewable energy technologies putting thousands of Australian jobs and billions of dollars in investment at even further risk,” he said.

Butler said during the 2013-2014 financial year, the CEFC invested $900 million in Australian renewable energy projects, attracting an additional $3 billion in private investment.

“These projects have employed thousands of people, billions of dollars of investment and supported the development of Australia’s renewable energy industry,” he said.

“The loans provided by the CEFC are being paid back to the government at a rate of 7%, making money which is returned to the Budget bottom line.

“It’s a win-win for taxpayers.”

According to an ABC report, Prime Minister Tony Abbott is quoted to have said it is “no secret” that he wants to abolish the CEFC, but while it is still in place it should be as useful as possible.

Abbott reportedly said it is not useful for the CEFC to invest in established technologies that can easily attract private funding.

“The best thing that the Clean Energy Finance Corporation can do is invest in new and emerging technologies, the things that might not otherwise get finance,” Abbott said.

But Butler believes it shows a lack of vision for Australia’s clean energy future.

“The whole world is moving towards clean energy and Tony Abbott is scrambling to take Australia in the opposite direction,” Butler said.