Victorian election: Daniel Andrews’ solar lure for renters, landlords

Daniel Andrews has pledged to subsidise installations for rental properties, increasing the renewable energy target by 50 per cent.

Premier of Victoria Daniel Andrews. Picture: AAP

Daniel Andrews has promised Victorian renters will be able to have “pets, pictures on their walls and solar panels on their roofs” under a Labor government, pledging to subsidise solar installations for 50,000 rental properties and increase the state’s renewable energy target to 50 per cent by 2030.

The pledge for renters builds upon changes the Andrews Labor government has already made to the tenancy act.

Opposition Leader Matthew Guy has slammed the bolstered renewable energy target, accusing Labor of fighting for the same ideological turf as the Greens and arguing state-based renewable energy targets are counter-productive when there is a national one.

Mr Andrews visited a solar panel manufacturer in Traralgon, in Victoria’s Latrobe Valley, to announce his new policy, which follows on from subsidies for more than 650,000 owner-occupied homes.

The Premier said households with solar panels would save about $900 a year and pay half of their savings back to the government over a four-year period.

In total, 25 per cent of the cost of the panels would be bored by the tenant, 25 per cent by the landlord, and the remainder by the taxpayer.

Mr Andrews claimed the entire solar panel project would create between 6000 and 8000 jobs.

“It’s a fantastic investment in giving those hardworking households control again over their power bills,” he said.

“Today is about going one step further, and that is an $82 million investment so that 50,000 renters across the state will be able to access the solar homes policy.

“Of course that comes on top of the most profound changes to rental laws in many, many decades, giving those tenants the rights and the security that they have perhaps never had.

“You can have a pet, you can put pictures on the wall, and you can have solar panels on your roof, but only under a re-elected Labor government.”

Victorian Opposition Leader Matthew Guy. Picture: David Geraghty

Energy Minister Lily D’Ambrosio said Labor’s extension of the renewable energy target would give confidence to industry to invest in new technology and create jobs in Victoria.

“More than $9bn of investment is now flowing into our state and will during the life of our scheme, and of course we know that the more energy supply clean energy, renewable energy that we put into the system, the downward pressure on energy bills is something that we will all enjoy,” Ms D’Ambrosio said, warning that the investment would be “put at risk” should the Coalition win government on November 24.

Labor’s target will aim for 25 per cent renewable energy by 2020, 40 per cent by 2025, and 50 per cent by 2030.

Mr Andrews argued the solar panel scheme would be affordable even for low income renters, citing a $4,000 per panel cost, which would see a tenant pay $250 per year over four years for their 25 per cent share of the cost.

“We think that a landlord who is going to finish up getting an asset on the roof of their property which will make that probably a more appealing rental for the next tenant, there’ll be many landlords I think who will jump at the chance,” Mr Andrews said.

Asked how the scheme would apply for the many renters whose tenancy may not last four years, Mr Andrews said Solar Victoria would oversee the contractual arrangements.

“They’ll make sure that people are entering into those arrangements in good faith. This has never been done before, so we need to be cautious, yes,” he said.

“That’s why it’s 50,000. If it works well and I’m very confident that it will, we always reserve the right to go further, but we think this is a good and balanced approach.”

The subsidy will only be available to renters with an annual household income of less than $180,000 and to properties worth less than $3m.

Mr Guy said the Coalition believed a national renewable energy target was the best way forward and would scrap Labor’s target if elected.

The Morrison government has said it will not renew it target after the Paris target of 26 per cent by 2020 is reached.

Federal Opposition Leader Bill Shorten has pledged a 50 per cent target by 2030, in line with state Labor’s promise today.

“You can’t have state-based targets that simply up energy costs in Victoria but have NSW at a competitive advantage over Victoria,” Mr Guy said.

“A state-based renewable energy target will see higher prices.

“The cost of living is already out of control, in Victoria.

“This target today will mean higher energy prices for Victorians and lower energy prices over the border in say NSW and South Australia.

“Why is Daniel Andrews determined to put Victorian consumers and Victorian households at a disadvantage to make them pay more? A renewable energy target needs to be a national approach.”

Mr Guy accused Labor of trying to win green votes in the inner city.

“I think it is quite opportune that the Premier makes this announcement today on the day that you’ve got nominations closing in inner city seats where it’s clear that Labor is under threat from the Greens and they’re having an ideological turf war in what were traditional Labor seats,” he said.

Mr Guy said his plan for energy generation would be announced “in the coming week”.