Supplier pleads for solar subsidies

Solargain South West general manager Luke McCauley fears the Federal Government’s review of the Renewable Energy Target could lead to job cuts in his business.

The RET was introduced by the previous Labor Government to increase solar power and deliver about 20 per cent of Australia’s renewable energy by 2020.

However, the government has ordered a review of the RET by the middle of the year.

Mr McCauley believes removing the RET could also remove the associated Small Scale Renewable Energy Scheme and increase the price of solar systems for households.

As part of the scheme, customers who install a 2kW solar energy system receive about 41 Small-Scale Technology Certificates. Then they can sell these STCs for about $35 each. This acts as a subsidy to encourage people to install solar powered systems.

Mr McCauley said people who were less affluent, who needed solar powered systems to cut energy bills, were unable to afford the systems without the subsidy.

“If they do decide to scrap it, which it seems Abbott is fairly keen to do, then it will definitely hurt the solar industry, ” Mr McCauley said.

WA Greens Senator Scott Ludlam said jobs would be affected if the RET was “wound back”.

“At the very minimum the renewable energy target should stay where it is, ” he said. “I think we should be looking at a sensible pathway for scaling it up.”

In announcing the review, Industry Minister Ian McFarlane said a broad range of stakeholders would be consulted.