Solar option

By Tania Martin
HILLS environmentalists have welcomed a move to scrap the cap on the Federal Government’s solar rebate scheme.
The government came under heavy fire last year when it placed income restrictions on solar panel rebates.
It excluded families earning more than $100,000 from being able to access the rebate.
In the Dandenongs a number of people had to drop out of solar neighbourhood projects because of the means testing placed on rebates.
Many could just not afford the cost of a solar system without the financial aid.
Dandenong Ranges Renewable Energy Association president Peter Cook said the change to the rebate system was a good start but more needed to be done to provide people with incentives to connect to solar.
Mr Cook said more than 12 people interested in joining neighbourhood projects last year had been forced to pull out because of the cap.
He said $100,000 a year between a family didn’t amount to much especially in the current economic climate.
The cap was scrapped last month as part of the Federal Government’s plan to lower pollution levels.
Shire of Yarra Ranges councillor Samantha Dunn said removing the cap was a step forward for the government.
“It never made any sense,” she said.
“It should never have been done in the first place … it’s about solar power not welfare related and was never appropriate.”
Mr Cook said a lot more needed to be done to make the solar industry sustainable.
Climate Change Minister Penny Wong announced the removal of means testing on solar panels and a new credit scheme.
The withdrawal of the restrictions will now allow people to access up to $7500 for a 1.5 kilowatt solar system.
However, the rebate available has been cut from $8000 to $7500.
Solar credits will also be introduced under the plan which aims to provide incentives for people to switch to renewable energy sources.
The credits allow owners of solar panels to earn five credits (Renewable Energy Certificates or RECs) for each mega-watt hour of energy produced by their panels.
La Trobe MP Jason Wood said it was fantastic news the Government had listened to the public about the means testing.
But he said negotiating the new system would be tricky for families.
“It’s not a straight forward system … it can be complicated and confusing,” Mr Wood said.
“Solar benefits will vary from city to city and based on a range of factors including where you live, the size of your solar panels, and the market value.”
Mr Cook is also pushing for the Federal Government to introduce a national feed-in tariff system.
A feed-in tariff is a fee paid to residents with solar power for excess energy that is fed back in to the electricity grid.
Despite the introduction of a state feed-in system this year, Mr Cook said more needed to be done and a better rate introduced.
The rate is currently 60 cents for every unused kilowatt hour put back into the grid which is comparable with the Australian Capital Territory on 60 cents and the Northern Territory’s 45 cents.
But Mr Cook said there needed to be a national system to make it more uniform.
He said the tariff needed to be increased to provide better incentives for people to switch to solar.