Solar panel installers fear losses after Andrews Government’s rebate freeze

A growing number of solar panel installers say they will be forced to lay off workers and face financial ruin after the Andrews Government froze a rebate scheme.

A growing number of solar panel installers say they will be forced to lay off workers and face financial ruin after the Andrews Government froze a rebate scheme.

The companies are pleading with Premier Daniel Andrews to re-open the program, saying customers have cancelled orders and installers are now being told to return deposits.

This month, the government froze its rebates, which effectively give most homeowners up to $2225 back if they install solar panels.

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The government said the scheme was oversubscribed for this financial year, and that it would start again in July with new caps in place.

But several companies have told the Herald Sun the “bizarre” decision meant their cashflow was now cut off because no one wanted to install until July.

Director at Sky Energy Solutions Sam Kent said it was a financial disaster.

“We have full-time staff, not subcontractors, and I am going to have to start laying off people,” he said.

Sahara Solar general manager Simon Miller has written to Solar Victoria about his company’s “total astonishment, disbelief, disappointment and anger”.

Blue Solar employees Adam Juntsir, Peter Collins and Frank Atlay feel the heat from the state government's decision to pause solar panel subsidies. Picture: Jake Nowakowski

“Unbelievably, we are now being requested to refund deposits on systems contracts signed off by both parties in good faith,” he said.

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. But how do you manage it when it’s done so suddenly?” he said.

Labor campaigned heavily on the policy at the November state election, and now risks a political backlash close to a federal election.

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While it promised 24,000 interim rebates until the scheme was properly set up in July, 30,000 applications are now in the system.

“Daniel Andrews’ lack of planning and consultation now means that small ­businesses will go to the wall, with dozens of workers facing ­imminent unemployment,” Opposition energy spokesman Ryan Smith said.

The director of Smart Energy at the Clean Energy Council, Darren Gladman, said one option would be for installations to continue but payments to solar owners be delayed.

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,” she said.

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