Coalition climate policy undermines large-scale renewable energy projects
National – Monday 08 February 2010
The Coalition’s plan for an additional $1000 rebate for solar PV and solar hot water systems could damage the renewable energy industry and do very little to combat climate change, says the Alternative Technology Association (ATA).
Under the Renewable Energy Target (RET) the sale of Renewable Energy Certificates (RECs), from large and small-scale renewable energy installations, fund the development of large-scale renewable energy projects, such as wind farms.
An oversupply of RECs, generated by a large increase in household solar hot water and solar PV installations, has caused a dramatic drop in the price of RECs, and put a halt to a number of commercial renewable energy projects, says Damien Moyse, Energy Policy Manager for the ATA.
The Opposition’s climate change policy, released last week, offers households an additional $1000 rebate to install solar PV and solar hot water systems.
“ATA welcomes additional support for household solar installations, but slapping on an extra $1000 rebate will mean that small-scale solar technologies will continue to dominate the renewable energy market, at the exclusion of the large-scale wind and solar developments.”
Mr Moyse says the Opposition’s policy will exacerbate the problem of a low REC price by increasing the number of RECs generated from small-scale solar installations.
“The Opposition has completely failed to account for the effect their rebate will have on the Renewable Energy Target market. It could easily stunt any further growth in Australia’s large-scale renewable energy industry.”
ATA has been calling on both parties to remove small-scale solar installations from the RET and support households to install solar with a Gross Feed-in Tariff.
“A national Gross Feed-in Tariff for small-scale solar technology is the most effective way to support communities to install renewable energy technology, while ensuring the REC price is high enough to support large-scale renewable energy projects.”
“The Coalition’s ill conceived policy will only reduce our chances of ever reaching the Renewable Energy Target of 20% clean energy production by 2020, and put the final nail in the renewable energy industry’s coffin.”
