IPART Calls For End To Solar Credits Rebate

The Independent Pricing and Regulatory Tribunal’s (IPART) ignorance of the value that home solar power systems contribute to Australia’s energy mix seems to be showing again. According to a report published in The Telegraph , IPART sent a submission to Energy Minister Martin Ferguson this week containing a call to end the Solar Credits multiplier, claiming that the scheme is not achieving emissions reductions or renewable energy production at minimum cost.

IPART was severely criticised for its lack of understanding regarding the benefits of small-scale rooftop solar panel systems. This is following the release of what it considered a “fair and reasonable” value for solar electricity exported to the mains grid.

Assuming The Telegraph report is correct, IPART should have also been aware it will will soon get its wish – the Solar Credits rebate will be slashed 33% in the near future, and then in July 2013, it will effectively no longer exist. The multiplier upon which the rebate is based will be dropped to 1.

Renewable energy technologies, such as solar power, are competing against fossil fuels that have been heavily subsidised for decades in various forms, and still are. This support does not come from thin air; it is paid for by taxpayers or by important community services which are not receiving the funding they need to operate effectively.

It’s not a situation unique to Australia. In the USA, the fossil fuel industry has been riding the subsidy gravy train for a very long time. “I don’t know if you’ve noticed, but they’re doing just fine on their own. So instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s,” said U.S President Obama said in his 2011 State of the Union speech.

Every new energy industry has required some form of subsidisation in its infancy and the fact that home solar power is approaching grid parity – without subsidisation – with these heavily-subsidised and polluting fossil fuels, is testimony to its economic street cred and value.

A helping hand to get there won’t be wasted – or of course there is always the option of removing more support from the fossil fuel industry and creating a level playing field.

by Australian Solar Quotes

The Author

Darryn Van Hout

I developed an interest in the Australian energy and construction sectors more than a decade ago and have since closely followed the trends, technologies and developments shaping both industries. My involvement in the Australian solar market began in 2008, and over the years I have built strong connections with professionals, businesses and organisations across the construction, solar and renewable energy sectors in Australia and internationally. These connections include solar panel and inverter manufacturers, electrical and construction industry professionals, software developers creating tools to quote, monitor and manage solar power systems, and media organisations that closely follow developments across energy, construction and renewable technologies. Today, I continue to contribute as an industry advocate, author and commentator, sharing practical insights and information to help Australian consumers and businesses better understand solar power, energy technologies, construction-related developments and the changing Australian energy landscape.