THE FACTS

Solar power currently accounts for less than 2% of total power sourced in Australia.

It is widely accepted that the dry, hot and sunny climate of Australia makes it an ideal candidate for greater utilisation of solar power.

However, the cost of solar power is presently higher per kilowatt than other energy sources (such as coal) due to the cost of solar panels.

From May 2008, an $8000 Federal Government solar panel installation rebate was restricted to people who earn less than $100,000 annually, reducing the number of panels that would have been installed by an estimated 60%.

From June 2009, the rebate was cut to $4000 and the means test was removed. This was because of the overwhelming popularity of the program, which the government hadn’t expected.

In the 2009-2010 Federal Budget the Treasurer Wayne Swan announced $1.5 billion over 6 years in a new Solar Flagships program.

In the same budget, Mr Swan announced $2 billion for ‘carbon capture and storage’ – often referred to as ‘clean coal’ – over 9 years.

Some have estimated that covering 4% of Earth’s surface with solar panels could supply all of the world’s electricity.

THE VIEWS

John Hepburn in a blog for Crikey.com.au:

“The contrast between renewables and supposed ‘clean coal’ couldn’t be more stark. The investment in solar is expected to create 1GW of real, emissions free power within the next 6 years. Wheras the larger investment in CCS will support the development of demonstration projects over 9 years. Reality vs Illusion.

Of course, the decision to give another $2billion to support the coal industry is just a political sop to an industry that has the Government over the barrel. The coal industry is well capable of funding their own research and development into CCS if they were really interested, but so long as they can get taxpayers to continue subsidising them they are unlikely to get their snouts out of the trough.”

Treasurer Wayne Swan in his 2009-2010 Budget Speech:

“…we are also absolutely determined that our nation building plans will create the low pollution economy Australia needs for the future. That’s why the Government is introducing the Carbon Pollution Reduction Scheme and expanding the national renewable energy target… I am pleased to announce the Government will also invest $4.5 billion in a new Clean Energy Initiative — the critical infrastructure that supports low emission technologies and creates low pollution jobs. We will establish Renewables Australia, a new innovation body to promote the development, commercialisation and deployment of renewable technologies. We will establish up to four new Solar Flagship projects to demonstrate the viability of solar technologies.
And we will support projects that demonstrate carbon capture and storage on an industrial scale from coal fired power stations.”

BREAKING IT DOWN

A) The Rudd Government continues to hedge its bets without committing fully to a program to convert Australian power to renewable sources.

The government continues to subsidise the coal industry by using taxpayers dollars to pay for carbon capture research. It could simply put money into solar power and make a massive difference to that industry and the environment.

B) The solar power industry in Australia is ready to take off, it just needs the right support.

The $8000 solar rebate was seized upon by the many Australians who want to contribute positively to the environment. Slashing the rebate is a backwards step for the solar industry and the environment.

WHAT’S YOUR OPINION?

Is solar power the way forward?

Should the Australian Government be investing in CCS technology, or in already-proven technologies?

Should the Australian Government reestablish the $8000 solar rebate?

Is Australia doing enough in the field of renewable energy?