Rita Panahi: Andrews’ government solar power scheme leaves more questions than answers

TOO many voters are willing to overlook just about any maleficence from incompetence to downright dodginess if you offer them something seemingly for nothing, writes Rita Panahi.

NOTHING will boost support for a scandal-riddled government faster than the promise of free stuff. Too many voters are willing to overlook just about any maleficence, from incompetence to downright dodginess, if you offer them something seemingly for nothing.

One can’t doubt the political nous of state Labor for announcing a policy that will make nine out of 10 Victorian homeowners eligible for a fat rebate on the installation of solar panels. Under the $1.24 billion scheme, a re-elected Labor government will pay $4450 upfront for rooftop panels — with homeowners given four years to repay half the cost.

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Solar panels installed on the roof in South Australia

It’s certainly an improvement on Labor spending $1.1 billion of taxpayers’ money not to build a desperately needed road. Dan Andrews’ great solar panel giveaway may be a cynical exercise dripping in self-interest but it’s also likely to succeed in appealing to voters suffering under the weight of enormous electricity bills.

For many it matters little that Labor has played a not insignificant part in pushing Victorians’ electricity bills sky-high — they simply want relief from energy bill stress and don’t care if the party offering the solution also caused the problem.

The closure of Hazelwood last year, which had been providing around 22 per cent of the state’s energy, has led to wholesale prices increasing substantially in Victoria and there’s little doubt that Labor tripling the tax on brown coal was a factor in Engie’s decision to close the power station.

Of course, mad energy policy is not limited to Victoria; it is a national phenomenon that sees a country blessed with abundant natural resources deliberately cripple itself with some of the world’s highest prices. The state government continues to push policies that prioritise emission cuts above lowering costs. This scheme is unashamedly designed to win back support from Greens voters while also appealing to those struggling with high prices.

At first glance the solar scheme looks like a stone that could kill two birds; help meet Labor’s ambitious renewable energy target and lower prices for long-suffering consumers but take a closer look and it’s sadly pink batts 2.0. The opportunity for shysters to capitalise is considerable as are the chances of a massive cost blowout.

For many it matters little that Labor has played a not insignificant part in pushing Victorians’ electricity bills sky-high. Picture: Getty.

Firstly, a new bureaucracy will be needed to manage the scheme, ensure operators don’t take advantage of vulnerable consumers and that householders repay their share of the installation cost.

If the government’s own figures are right and an estimated 650,000 householders take advantage of the program, that amounts to more than $1.4 billion, add to that the cost of the new bureaucracy staffed with dozens if not hundreds of public servants to administer the program, and the expenditure increases substantially.

It’s hard to see how Victorian Labor’s socialist sensibilities can reconcile the fact that under this plan, struggling renters and pensioners in flats miss out while wealthy homeowners in $2.5 million dollar mansions receive a generous taxpayer subsidy.

Why should someone earning $160,000 a year and living in a home valued up to $3 million qualify for a handout?

How can the government ensure that energy companies won’t simply increase the cost of electricity to cover any lost revenue? Serious questions also need to be asked about how they arrived at the $890 cost saving?

You’d think the Andrews Government would be keen to spruik their shiny new policy on Victoria’s most listened-to radio station but on Sunday both the Premier and Minister for Energy, Lily D’Ambrosio, refused to appear on 3AW to discuss the details of the green scheme.

You simply can’t trust the figures, either on the savings on bills or the total cost to taxpayers, writes Rita Panahi. Picture: AAP

Who can blame them? This is a policy with holes you could drive a Kenworth truck through. You simply can’t trust the figures, either on the savings on bills or the total cost to taxpayers.

And yet this cynical exercise in pork barrelling could mean Labor is re-elected, unless the Opposition can formulate an energy policy that gives the masses what they want; cheap, reliable power.

“You will pay nothing upfront, we’ll give you half the cost for free and the rest you can pay back over four years interest free,” Premier Andrews said in a video posted on social media on Sunday.

Opposition Leader Matthew Guy told the Herald Sun that the scheme was reminiscent of the pink batts fiasco “with all the telemarketers and dodgy installers that come with it”.

“The reality is that those most struggling with cost of living pressures, like those renting, have no chance to benefit from this scheme,” Guy said.

Federal Minister for Resources and Northern Australia, Matthew Canavan, asked a pertinent question in response to the Victorian plan: “If renewable energy is cheaper why does it continue to need so much money from your taxes?”

Of course, dumping the absurd amount spent on renewable subsidies would be unthinkable for Labor, who are competing against the Greens for inner city seats.

It’s much easier to commit to reckless expenditure that appeals to the worst instincts of voters.

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