Solar power can be a godsend for those struggling with rising power bills, but a move by the Federal Government could mean poorer Australians miss out on the funding to install cost-effective solar systems.
Last week the Clean Energy Finance Corporation (CEFC) was directed by the Government not to fund any more wind or household solar projects and instead focus on less developed technologies. The draft mandate calls for “mature and established clean energy technologies … to be excluded from the corporation’s activities, including extant wind technology and household and small solar”.
Despite being a $10 billion enterprise, the CEFC has made a priority of small-scale solar projects which benefit those who are not able to install solar power in their own right. This includes those who don’t own their own home, live in apartments or simply can’t afford the initial outlay. Community projects that help fund the upfront installation costs of solar systems will no longer be supported by the CEFC, making it impossible for those who can’t afford the initial outlay to access the savings of solar energy.
CEFC Chief Executive Oliver Yates said projects that cover up-front costs did not have a proven business model and therefore often found it difficult to secure bank finance.
The Government claims that the CEFC was established to invest in new technologies that might not be able to secure finance, rather than support existing sectors.
However, Labor environment spokesman Mark Butler said that the corporation was established to ensure there was access to well-developed lending markets.
Finance Minister Mathias Cormann, who said that the Government had supported household solar with subsidies associated with the renewable energy target, has defended the move.
The CEFC has been under fire from the Government, with a move last year to abolish the corporation being blocked in the Senate by Labor, the Greens and Palmer United Party voting against the legislation.
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Opinion: Missing the point
By trying to destroy the CEFC, the Government is removing access to more affordable renewable energy that simply can’t be accessed by the less well off without funding assistance.
If you’re living on an Age Pension, or renting someone else home, then the average $5000 installation cost of solar panels is going to be well out of your reach. Yet, depending on the system being installed, usage, tariff and location, solar power can help households save up to $1200 per annum. That’s $1200 more for those who struggle on an Age Pension or for those who battle to pay their rent every month.
The CEFC finances a variety of different schemes, it doesn’t just give money away. It recoups the costs through clever schemes that help make the installation affordable. One such type of scheme is where local councils cover the cost of installation of solar panels and recoup the costs over a number of years through extra council rates paid by the recipient. Other projects would see the installation of panels on low-income homes and social housing, which would help those on limited income cope better with the continual rise in power costs.
While everyone has a differing view on renewable energy and green living, there is little denying that anything that can be done to lower household energy bills should be done. But sadly those not in the position to cover the necessary outlay are often those who would benefit most from the savings.
Yet again, a decision made at a higher level adversely affects those at the very bottom the most.
Do you have solar power? Have you noticed a decrease in your energy bills? Should the CEFC continue to fund projects that make roof-top solar power installation affordable?
