Backward Step on Rebates for Home Solar Panels
The new budget introduced a damper for the solar industry by now applying a means test to the eligibility of up to $8,000 government rebates for the installation of a residential solar power installation. The means test to be introduced shortly means that any household having a combined annual income of over $100,000 per year will not be eligible for the government rebate any longer.
The introdcution of this means test, at the level proposed, is disappointing and confusing as other measures proposed in the new budget, especially around family tax benefits, are means tested at $150,000 per household. Why introduce means testing at two different levels for different benefits?
As reported in The Age the solar industry is already suffering, with 50-70% of orders were being ditched as a result of the means test, leaving companies with millions of dollars of lost business. In fact some businesses already needed to cut jobs due to the surge in cancelled orders and more jobs are expected to go.
This probably makes the solar system my wife and I want to install on our new home less affordable as most likely we won’t pass the means test and won’t be able to claim a government rebate.
If the government rebate is not sustainable, maybe the government should instead ensure that the feed-in tariffs for grid connected solar installations is more attractive as highlighted by Hans Josef Fell, the German Greens’ energy spokesman in this article in The Age.
Mark and Rosalba are building a strawbale house!
May 18th, 2008 at 18:43
What makes me really mad is that the COST of means testing people for these types of schemes are often as expensive as just allowing people to have the money.
Can’t say that I’m all that surprised sadly. I’m not a big fan of the labor government myself.
May 18th, 2008 at 19:42
That’s a good point about the cost of administrating a means test.
The problem I guess is that one government starts some kind of scheme and subsequent governments never quite have the guts to abolish it so they try and restrict access to it through some additional rules.
In effect each government makes the rules only more complicated and harder to administer…
For example, I think we are well overdue a simplification of our tax system!
June 1st, 2008 at 8:47
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