Solar scheme gets cool reception as suppliers shun government offer - Bligh in hot water

Courier Mail
Friday 9/10/2009 Page: 5

MAJOR solar hot water suppliers have shunned the State Government's solar scheme, putting one of Labor's key election commitments in doubt. The Government has been forced to begin the rollout of 200,000 cut-price solar hot water systems and pumps across Queensland households with just one small supplier, more than three months behind schedule. It will have to reopen its invitation to larger suppliers in the hope that they will enter the scheme, or risk being unable to supply the more than 10,000 completed applications already received for the systems.

The program, which was one of the Bligh Government's key climate change election commitments, was to supply 200,000 solar hot water systems or heat pumps for just $500 for residents, or $100 for pensioners, through a bulk buying arrangement. Energy Minister Stephen Robertson admitted the supplier, Conergy, was risky due to its size, but said major distributors had refused to partake in the scheme. "This has been a challenging program to deliver, particularly in an environment where the price of renewable energy certificates have been declining over the past few months," he said. "Whilst Conergy is a small and relatively new company, we hope that by participating in this scheme it will consolidate and grow its presence here in Queensland. "I acknowledge that there may be some risks in going forward with a company of this size however it needs to be appreciated that the large suppliers have to date not chosen to participate in our scheme."

He said as a result, the initial rate of installation for the solar systems would be slow. "The rate of installations will ramp up as we enter into standing offer arrangements with more suppliers, so initially it will be a slow start," he said. The comments came after the first solar hot water system was installed on a north Brisbane home yesterday, more than three months after the cut-price systems were expected to begin. The solar scheme was expected to begin the first installations from July this year, but was pushed back after the Federal Government slashed its rebate for heat pumps from $1600 to $1000. The program is reliant on the Federal solar rebate to help reduce the cost. Yesterday the Environment and Resource Committee met to review the state's climate change initiatives, and the impacts of carbon trading schemes. Building Codes Queensland director Glen Brumby said Queensland should be leading or at least at pace with climate change policy across Australia.