A well-intentioned scheme will start to do more harm than good unless it is fixed

The $1.3 billion solar rooftop rebate scheme is a debacle and politics is trumping policy when it comes to fixing the obvious problems, writes Matt Johnston.

The $1.3 billion solar rooftop rebate scheme the Andrews Government promised last year
was a vote-winner.

It was clever — aimed at middle-income families worried about the cost of living but who have an eye on the environment.

The scheme offers a $2225 rebate, as well as a $2225 interest-free loan to help with the rest of system installation costs.

Households earning up to $180,000 a year can apply, as long as their homes are worth less than $3 million.

The popularity of the scheme was obvious early this year when the market was flooded and the government froze rebates until it could get its act together.

Since then the rollout has been a debacle.

On July 1 the scheme opened again, and 3333 rebates were offered. They were snapped up by July 3.

Energy Minister Lily D’Ambrosio is stubbornly refusing to acknowledge the extent of the problem.

This meant the industry was effectively back on hold until August 1 when another 3333 will be offered.

Premier Daniel Andrews and Energy Minister Lily D’Ambrosio are stubbornly refusing to acknowledge the extent of the problem in an industry they want to nourish.

When they blundered in and froze rebates, they effectively shut down business for many installers overnight.

There were good reasons for an orderly rollout, of course, including safety.

No Labor government wants to risk another Home Insulation Program fiasco.

The other reason was because the rebates for 650,000 households were budgeted to last a decade, not two years.

Since the freeze was initiated, many companies have been gasping for air like fish out of water.

Few customers want to pay for a rooftop solar system they could get for nothing a few months later.

Perversely, many good operators risk going to the wall or are shedding staff, even though the steady rollout was supposed to lock out cowboys and help the good guys.

Picture this.

You have a dozen staff putting panels on rooftops last year, with a steady stream of work.

All of a sudden, customers who placed orders are offered rebates and suspend the orders they have with you until the rebates are processed.

How would you keep on all those staff if the work dried up?

This could affect the quality of installations long-term, especially if phoenix companies set up shop only to disappear a few years later.

Then there’s the absurdly difficult process required for processing and claiming rebates.

One contractor I spoke to said he had tested out the system himself to understand what customers had to go through, and almost had a nervous breakdown.

Names had to be case sensitive, meaning orders can’t be found if the name of the company or individual was missing a capital letter.

Trading names of an installer are sometimes different to the company name, and quotes have various prices because of federal and state rebates to add to confusion.

One 80-year-old customer, who an installer helped for days for a system that would have taken half a day to install, was left close to tears because he thought his time had elapsed to qualify for the cash.

Solar Energy Council chief executive John Grimes said “it’s easier to find Willy Wonka’s golden ticket than to get a solar rebate”.

Solar Energy Council chief executive John Grimes said “it’s easier to find Willy Wonka’s golden ticket than to get a solar rebate”.

Perhaps the most bizarre aspect was the government using facial recognition for online rebate applications.

What possible reason could there be for this added hurdle?

The 80-year-old customer tried to get his friend to help with a smartphone but eventually the installer asked for him to get a post-pack, which took so long to arrive his stress was only compounded.

Bigger companies are hiring people to process paperwork, smaller ones are taking people off tools to process applications.

Opposition Leader Michael O’Brien wants a parliamentary inquiry into the mess and this isn’t a bad idea, but Andrews should step in and do something now.

Many companies who were rolling along nicely last year want the rebates scrapped.

That ain’t going to happen.

Other suggestions are worth exploring.

For starters, bring forward some of the rebates from summer, when workers are often on Christmas shutdown.

These could help fill the looming voids in August and September.

More difficult, but possible, would be to change the rebate eligibility criteria, and fix the ridiculously complex application system.

Politically, however, the government will struggle to cut back thresholds from $180,000 a household. Perhaps it could reduce the $3 million household value with less fuss.

At the moment, politics is trumping policy when it comes to fixing obvious problems.

People seem unconcerned by the best solar system for their home, they just want it free.

One unintended consequence of the calamitous rollout could be decent and hardworking operators cutting staff or facing closure while sharks who are clever at paperwork and sales survive or thrive.

August 1 will be a defining date for many companies involved, when the next round of rebates opens up.

It’s also getting close to Spring, which is the busiest period for installers.

Businesses can’t afford to rise and fall from month to month.

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The term solar-coaster has been used to describe this effect, and it sounds like a fun ride.

For the installers dealing with this reality it’s like someone with anxiety problems being strapped onto the ghost train.

If the government doesn’t sort out this mess soon, a well-intentioned scheme will start to do more harm than good — politically and practically.

Matt Johnston is state politics editor

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