$1.3b solar panel scheme set for finetuning due to industry pain
The Victorian government has finally conceded that the rollout of a $1.3 billion solar panel cash rebate scheme, which led to a horror impact on the industry, may need to change — but only under certain conditions.
VIC News
Don't miss out on the headlines from VIC News. Followed categories will be added to My News.
Premier Daniel Andrews has opened the door to altering the rollout of his government’s $1.3 billion solar homes scheme to provide a lifeline to struggling installers.
The program, which gives taxpayer-funded handouts worth $2225 to eligible Victorian households who put solar panels on their rooftops, has been under fire for its impact on the industry.
Only 3333 rebates a month are issued by the government, with this month’s allocation snapped up in 105 minutes on August 1.
Businesses say this effectively freezes their order books because customers choose to wait for the cash payment another month, rather than proceed with installations.
The scheme also provides upfront loans worth $2225 for households that earn less than $180,000 a year, making the total taxpayer-funded subsidy up to $4450.
Mr Andrews defended the pace of the program’s rollout, which is being done over 10 years, saying safety was paramount.
But in a sign the government is finally listening to installers in financial strife, the premier hinted at changes to come.
“I am happy to look at expanding the number of installations each month but I will only do that if I can be completely confident that high quality can be observed,” he said.
It was revealed today that installers were being sent information on mental health support agencies such as BeyondBlue as they struggle to cope with the impact of the rebate scheme.
Many reputable businesses had been installing dozens of audit-approved systems every month but have no jobs for August because customers missed out on rebates.
MORE NEWS:
DISASTER LOOMS FOR PANEL INSTALLERS WHO MISSED REBATES
SOLAR COASTER RISKS DOING MORE HARM THAN GOOD
Opposition energy spokesman Ryan Smith said the government had sat on its hands while problems were exposed.
“It is a measure of the arrogance of Daniel Andrews and his Labor Government that, while knowing details for mental health support is desperately needed by solar installers, he refuses to axe or even alter this damaging policy,” Mr Smith said.
“With hundreds of jobs lost, businesses closed and mental health issues throughout the sector rising, Daniel Andrews must respond to the pleas from the sector.
“Daniel Andrews must act to restore an industry that neither asked for nor wanted, this disastrous taxpayer-funded rebate.”
Co-founder and director of Solar Cutters Jack Long said the mood in the industry was extremely negative.
“It’s a bit bewildering to be honest, you are being treated as a bit of a lotto and it’s sad that this is what the industry has become and it all depends on what happens on the first of each month and you can’t run a business that way,” he said.
“I think in theory the program is great but the way it’s been rolled, we have links to beyond blue and lifeline across our pages, it’s becoming quite dire.
“The sad thing is that the industry was pumping, it really had legs until the rebate came in and the industry has come to and grinding halt and is going backwards. It is becoming a bit of a laughing stock which is upsetting.”
Dave Douglas, part owner of Eversolar, said the number of panels installed was down.
“We were doing about 110 installs a month which is about 2600 panels a month,” he said.
“Now we are doing roughly 60 installs a month and that was a good month.
“We have recently had to take away our margins and now we are literally running on no margins.”
Smart Energy Council chief executive John Grimes said the scheme had been “diabolical”
“We’ve had a flood of feedback from hundreds of members in Victoria suffering financial and emotionally,” he said.
”They have put in this unnecessary red tape. Applying it is really difficult and there are some ridiculous measures like facial recognition in place.”