Attributing the closure to the unexpected popularity of the scheme, Minister for the Environment, Heritage and the Arts Peter Garrett said that the Government had committed over $700 million to the SHCP - more than four times its original commitment - and would ensure all existing eligible applications would be funded to ensure a smooth transition to Solar Credits.
The Solar Credits scheme will replace the SHCP immediately, following passage of the Renewable Energy Target (RET) legislation which will be introduced into parliament next week. While the new scheme may not be as generous as the SHCP, it will not be means tested and small businesses will not be excluded.
The expanded RET scheme requires that the equivalent of at least 20 per cent of Australia’s electricity comes from renewable sources by 2020.
“With Solar Credits broadening the availability of solar technology to all homes irrespective of income, as well as businesses and community groups, plus the ongoing rollout of the $480 million Solar Schools program, now is the time to let industry get on with the job of meeting these record levels of demand and for Government to provide a new kind of support to build this industry further,” Mr Garrett said.
Article continues below…When announced in November 2007, the SHCP was allocated $150 million to provide up to $8,000 for the installation of solar photovoltaic (PV) systems in up to 3,000 homes each year over five years.
The program has exceeded these goals, resulting in:
- 32,000 solar systems installed as at 5 June, a number which is increasing each week
- A further 63,000 installations still to be completed
- A doubling of accredited solar panel installers over the last year to more than 1,000
- A further 300 solar installers in training now and a 40 per cent increase in industry training courses since November 2007
- A five-fold increase in budget
- And up to 12 months worth of work still to be done based on current installation rates.
While the SHCP has transformed the solar PV industry, the crucial policy issue for installers and suppliers alike is the introduction of a national gross feed-in tariff (FiT) system.
“Presently, the scope of projects is largely dictated by government funding availability; however, a gross national FiT will allow investors to determine the size of their investment and the industry will expand accordingly to meet demand,” said Phoenix Solar Managing Director Christian Bindel.
To be eligible for assessment under the SHCP guidelines, completed applications must have been sent to the SHCP Manager by midnight on Tuesday 9 June 2009.
The Department of Environment, Water, Heritage and the Arts has advised that due to the large volume of applications under this program, applications and installation reports are taking up to eight weeks to process.
