{"id":545,"date":"2011-06-30T11:15:16","date_gmt":"2011-06-30T01:45:16","guid":{"rendered":"http:\/\/www.solarquotes.com.au\/blog\/?p=545"},"modified":"2025-12-19T14:31:40","modified_gmt":"2025-12-19T05:01:40","slug":"solar-subsidies-lets-get-the-facts-straight","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/solar-subsidies-lets-get-the-facts-straight\/","title":{"rendered":"Solar Subsidies : Let’s get the facts straight"},"content":{"rendered":"

Despite running a popular Solar Power website, whose revenue is seriously helped by generous Federal<\/a> and State solar subsidies<\/a>, it may surprise you to learn that I’m not a huge fan of government subsidy in any shape or form. Mainly because I have worked for the government and seen how inefficient they really are. Trust me it is frightening.<\/p>\n

I would be happy for the Feds to completely scrap their solar subsidy, called Solar Credits<\/a>, and let the economics of small scale solar stand on its own merit through innovative finance schemes designed by innovative Solar Installers.<\/p>\n

Here’s an example of how unsubsidised solar could work – from the Australian Financial Review no less:<\/p>\n

http:\/\/squot.es\/iHuAuB<\/p>\n

(Yes – it is a bit naive in its simplicity and currently battery backup systems are more expensive – but you get the idea…)<\/p>\n

However, if the Feds are gonna scrap solar subsidies then it comes with one condition: scrap all the Federal subsidies for fossil fuels. Fair dinkum?<\/p>\n

Here’s an illustration of total renewable subsidies vs. total fossil fuel subsidies courtesy of the ACF:
\n\"\"<\/a><\/p>\n

The black box is the size of fossil subsidies compared to the green renewable subsidies.<\/p>\n

So come on pollies, scrap the solar subsidies, along with all the fossil fuel subsides.<\/p>\n

I’ll bet that the Solar Entrepreneurs and private companies will out innovate those, complacent, stuck-in-the past, besuited fossil fuel execs every time.<\/strong><\/p>\n

Bring It On!<\/p>\n

And for God’s sake let’s place the solar subsidies in the context of all the other subsidies that this bloated government dishes out.<\/p>\n

Feed In Tariffs<\/strong><\/p>\n

And what about Feed In Tariffs paid for by the state governments?<\/p>\n

Here’s what should happen in my humble opinion.<\/p>\n

Force the Energy Retailers to pay the “wholesale price” to customers that export their solar electricity to the grid. This is only what they would otherwise pay the coal generators for the same kWh. That will provide about 7 cents per kWh.<\/p>\n

Force the electricity distributors to pay another 7c to thank the solar household for reducing the amount of infrastructure they need to build to get power from their power stations to the cities. (Because the solar energy is generated close to the point of use – it helps to take the strain off the system on the hottest days – and these distribution costs are about 7 cents per kWh).<\/p>\n

Finally – and this is not gonna be popular – put a levy on the purchase price any Air Conditioner<\/a> that is less than 5 star efficient to cover the other 7c. Did you know that what ever amount you pay for that air conditioner, the (massively subsidised) generators have to invest that much again in generating capacity to meet the demand for the energy guzzler?<\/p>\n

(And don’t get me started on the fact that anyone who air conditions their home before putting simple eaves on<\/a> their N, W and E facing windows is being economically insane anyway)<\/p>\n

Add all that up and you can easily afford to pay 21c per kWh as a NET, national feed in tariff. And if you are smart about your energy consumption, you can buy a solar system with the right finance package<\/a> and most likely be cash flow positive almost immediately.<\/p>\n

Too Easy?<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite running a popular Solar Power website, whose revenue is seriously helped by generous Federal and State solar subsidies, it may surprise you to learn that I’m not a huge fan of government subsidy in any shape or form. Mainly because I have worked for the government and seen how inefficient they really are. Trust […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[54],"tags":[33],"class_list":["post-545","post","type-post","status-publish","format-standard","hentry","category-solar-policy","tag-solar-rebates","entry"],"acf":[],"yoast_head":"\nSolar Subsidies : Let's get the facts straight<\/title>\n<meta name=\"description\" content=\"Come on Pollies, scrap the solar subsidies on one condition: that you also scrap the $12 Billion of fossil fuel subsides dished out each year. 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Echoing his comments made in August, Origin Energy managing director Frank Calabria said he wants solar subsidies shown the door sooner rather than later, even though Australia's national subsidy is already being gradually\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"An early end to Australia's solar subsidy?","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/10\/solar-rebate-end.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/10\/solar-rebate-end.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/10\/solar-rebate-end.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/10\/solar-rebate-end.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":19913,"url":"https:\/\/www.solarquotes.com.au\/blog\/abbott-renewables-subsidies-mb0501\/","url_meta":{"origin":545,"position":1},"title":"Abbott (Again) Calls For An End To Solar Subsidies","author":"Michael Bloch","date":"March 13, 2018","format":false,"excerpt":"Surprise, surprise - Tony Abbott has joined the call for an end to solar subsidies - in fact, all new renewables - after backbench colleague Craig Kelly's recent ill-informed dummy spit. As we reported on Monday, Craig Kelly believes Australia's major solar subsidy (sometimes referred to as the \"solar rebate\")\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Tony Abbott - solar subsidies","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/abbott-solar-subsidies.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/abbott-solar-subsidies.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/abbott-solar-subsidies.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2018\/03\/abbott-solar-subsidies.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":61555,"url":"https:\/\/www.solarquotes.com.au\/blog\/victoria-solar-rebate-mb2460\/","url_meta":{"origin":545,"position":2},"title":"Victoria Solar Panel And Battery Rebate Update","author":"Michael Bloch","date":"May 4, 2022","format":false,"excerpt":"Further to late April's announcements, there are more changes ahead for Victoria's popular Solar Homes program - here's what's happening. The Andrews Government's State Budget handed down yesterday is providing more than $42 million in funding for Solar Victoria, the agency overseeing the Solar Homes program. For households not quite\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Solar subsidies in Victoria","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-subsidy-victoria.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-subsidy-victoria.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-subsidy-victoria.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-subsidy-victoria.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/solar-subsidy-victoria.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":26833,"url":"https:\/\/www.solarquotes.com.au\/blog\/energyaustralia-solar-subsidy-mb0883\/","url_meta":{"origin":545,"position":3},"title":"Solar Subsidy In EnergyAustralia’s Crosshairs (Again\/Still)","author":"Michael Bloch","date":"January 1, 2019","format":false,"excerpt":"EnergyAustralia really doesn't seem to like Australia's major solar subsidy that has helped millions of households slash their electricity bills. The Daily Telegraph ended 2018 with a story (paywall) published late last night claiming analysis by EnergyAustralia indicates government subsidies to Australian households that have installed solar panels are whacking\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"EnergyAustralia and the solar subsidy","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/01\/energy-australia-solar-subsidy.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/01\/energy-australia-solar-subsidy.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/01\/energy-australia-solar-subsidy.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/01\/energy-australia-solar-subsidy.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":43050,"url":"https:\/\/www.solarquotes.com.au\/blog\/sa-battery-subsidy-reduction-mb1678\/","url_meta":{"origin":545,"position":4},"title":"SA Home Solar Battery Subsidy To Be Slashed Again","author":"Michael Bloch","date":"September 10, 2020","format":false,"excerpt":"South Australia's Home Battery Scheme subsidy will soon get another haircut, dropping by $1,000. The Scheme commenced in October 2018 with the aim of financially supporting the installation of\u00a040,000 solar battery systems across the state. Initially the subsidy was set at $500 per kWh for non-energy concession holders and $600\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"South Australia Home Battery Scheme","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/home-battery-scheme-subsidy.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/home-battery-scheme-subsidy.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/home-battery-scheme-subsidy.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/home-battery-scheme-subsidy.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/home-battery-scheme-subsidy.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":61302,"url":"https:\/\/www.solarquotes.com.au\/blog\/victoria-solar-homes-mb2451\/","url_meta":{"origin":545,"position":5},"title":"Victoria’s Solar Rebate Program Expanded","author":"Michael Bloch","date":"April 27, 2022","format":false,"excerpt":"The Victorian Government yesterday announced a number of changes to the state's Solar Homes Program, providing greater access to various subsidies and loans for households and businesses. For Households Under the Solar Homes program up to now, once you received the Victorian solar panel rebate (actually a subsidy), you couldn't\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Victorian solar subsidies","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/04\/victoria-solar-homes.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/04\/victoria-solar-homes.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/04\/victoria-solar-homes.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/04\/victoria-solar-homes.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/04\/victoria-solar-homes.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/comments?post=545"}],"version-history":[{"count":23,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/545\/revisions"}],"predecessor-version":[{"id":96788,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/545\/revisions\/96788"}],"wp:attachment":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media?parent=545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/categories?post=545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/tags?post=545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}