Solar panel rebate: Installers claim State Government program is costing jobs

Householders are rushing to secure government cash handouts for solar panels. But installers say it’s killing the industry.

Hundreds of solar panel installers are being laid off amid claims cash handouts for customers are “killing the industry with kindness”.

The Sunday Herald Sun has been told up to 400 jobs have already been lost after the State Government wound back a solar panel rebate of up to $2200.

It’s been limited to 3333 householders a month, but the allocation was exhausted within three days when it began in July.

Smart Energy Council chief executive John Grimes, whose organisation represents about 350 solar installers and wholesalers in Victoria, said customers who missed out were then pulling the pin until the next rebate round.

Householders in Victoria have rushed to secure cash as part of the rebate program. Picture: AAP

He said as many as 6000 solar installations were being completed statewide each month before the handout began.

“There is a crisis in the solar industry,’’ Mr Grimes said.

“I have business owners in tears on the phone with me. I am giving them the contact details for Lifeline.

“There is no company that has not been affected and most of them have been massively affected.

“Most of them have let staff go and they’re just hanging on.

“People’s family homes are on the line.”

Solar workers — who will on Thursday rally outside state parliament — want the rebate halved so it doubles how many people can get it.

As an alternative, an extra $100 million would be poured into the scheme this financial year.

Mr Grimes said as many as 400 solar jobs statewide had been lost with a further 800 to 900 under immediate threat.

“The money has actually killed the industry — they have killed the industry with kindness,’’ he said.

“I think they actually had good intentions but they didn’t design the system properly.”

ECG Electrical Victoria director Elias Ellis said the Altona-based business had been forced to let go nine workers after its installations fell form around 30 jobs a month at the start of the year to just four in June.

So far this month there’s been just two jobs.

“How can I survive?’’ Mr Ellis said.

“There is no work.

“I am crashing into a wall in slow motion.

“I am staring down losses of literally hundreds of thousands of dollars.

“I didn’t ask the government to bring this rebate in. I was totally happy and content.

“The government has created this and they can fix it.”

Solar Homes Minister Lily D’Ambrosio said the rebate scheme was designed in consultation with industry. Picture: File

SolarQuotes founder Finn Peacock, whose business refers customers to panel installers, told the Sunday Herald Sun: “Business’ phones stopped ringing.”

“It dried up overnight,’’ he said.

“Businesses are just hitting the wall and if they haven’t hit it they soon will.

“They are literally going broke.”

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Solar Homes Minister Lily D’Ambrosio said: “The monthly rebate was designed in consultation with industry to provide certainty to solar businesses, avoid “boom and bust” cycles of installations and ensure the program is rolled out safely over the next 10 years.’’

“This is a significant change in the way the solar industry operates and we’re working with the sector to help them adapt — but we make no apologies for making it cheaper and easier for families to install solar and take control of their energy bills,’’ she said.

Improvements to make it easier to apply for the scheme were among measures being rolled out before the next round of rebates.

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