Installers slam changes to rooftop scheme subsidies as they ride the ‘solar-coaster’

Victorian solar installers say the sector has been thrown into turmoil by the Andrews Government’s sudden decision to introduce new caps for its rooftop subsidy scheme.

Solar installers say the sector has been thrown into turmoil by sudden changes made to the Andrews Government’s rooftop subsidy scheme.

The scheme, which pays homeowners up to $2225 for an average 4kW rooftop solar panel system, was a key Labor promise in the lead-up to the November state election.

The full rollout begins July 1, but to ensure the industry didn’t collapse because households were waiting for subsidies, the government promised 24,000 interim rebates.

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The government announced last week this was already oversubscribed, and rebates would be halted while the 30,000 applications already in the system are processed.

It also said a new annual cap would be introduced to ensure an orderly rollout of 650,000 systems over the next decade.

Blue Solar employees Adam Juntsir, Peter Collins and Frank Atlay are unhappy with the government's decision to halt solar subsidies. Picture: Jake Nowakowski

But installers said the sudden announcement last week — described as part of the “solar-coaster” ride the industry has experienced over the past decade — meant customers were cancelling orders to wait for July, cutting off cashflow and putting jobs at risk.

General manager of Blue Solar, Hasan Altunbas, likened it to a surprise Christmas shutdown.

“Everyone knows at Christmas that it’s coming so you balance things and you can work it through. But how do you manage it when it’s done so suddenly?” he said.

Opposition energy spokesman Ryan Smith blamed poor planning by Premier Daniel Andrews.
“Solar installation businesses have employed more people to cope with demand, but have now had the rug pulled out from beneath them, leaving many employees unsure about their future,” he said.

Opposition energy spokesman Ryan Smith.

Director of Smart Energy at the Clean Energy Council, Darren Gladman, said a lot of businesses said resulting cashflow issues would make it hard for them to pay staff.

Mr Gladman said one option for the government would be for installations to continue but payments to solar owners delayed until the new financial year, or change the program’s annual income threshold of $180,000.

A government spokeswoman said there was a “huge pipeline of work for the industry”.

“The program is being rolled out over 10 years, not 10 minutes, to ensure we continue to have the highest quality and safety standards in the country when it comes to rooftop solar.”

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