The termination of Australia's Renewable Energy Bonus Scheme, which has provided more than A$320 million in incentives for households to switch to more energy-efficient hot-water systems, announced yesterday (28 February 2012) by the Parliamentary Secretary for Climate Change and Energy Efficiency, Mark Dreyfus, is likely to have significant short-term negative impacts on solar hot water manufacturing, wholesale, retail and installation businesses across Australia as well as those businesses who supply goods and services to them.
‘Government has failed to consult with the industry on the ensuing changes, and this will have significant impacts on businesses working through the current difficult economic conditions, says Professor Ray Wills, Chief Executive of the Sustainable Energy Association of Australia (SEA - www.seaaus.com.au).
‘Sudden termination of schemes is a poor way to manage markets and will put jobs at risk - a far more controlled and fiscally responsible approach would have been to announce some scale back - say a 50% reduction - in the rebates, not to end them completely.'
‘The renewable energy industry continues to be plagued by government decisions at both Federal and State levels that lead to boom/ bust cycles and fail to provide the conditions needed to grow the industry sustainably.'
‘SEA media releases are usually longer, but continuous decisions like this are leaving me lost for words. In 2012 we should have learnt something from the poor decisions of 2011 - it appears we have not.' concludes Prof Wills.
Government puts renewable industry in hot water - again.
SEA Media Release - 29 February 2012