Sunrise's Solar Power Petition

Channel 7's "Sunrise" program is repeating their campaign from a few years ago to get the government to continue funding solar panels for everyone. You can sign the petition here.

Back in 2006, Sunrise proved that people power does work. When the Government was planning to ditch the rebate on solar panels, Sunrise viewers spoke up. Well since then, Australia has taken a backward step.

The new Government now means tests the rebate. If this plan stays, the rebate that makes solar panels affordable will only be available to households earning less than 100-thousand dollars a year.

Now, we're calling on the Government to scrap the means test. This is not a baby bonus - this is a valid incentive for ALL Australians to do something about global warming.

WE, THE UNDERSIGNED, CALL ON THE FEDERAL GOVERNMENT TO SCRAP THE MEANS TEST ON THE SOLAR PANEL REBATE.

My thoughts are that polycrystalline panels are and always will be too expensive, that they need UPS type storage, and maybe like satellite dishes the householder doesn't need to own them. My 2kw system cost me about $20k in 2005 and I got $4k back with no means test. I can make a small annual net surplus by other energy savings such as restricted water heating and burning free firewood. Many people don't have these options so frankly I wonder if it is worth the bother on large scale.

What might work is if every house had 2.5 kw of thin film panels with a say 20 kwh battery UPS with inverter. Or maybe a plugin hybrid car in the garage. A segment of roof space should be the solar hot water service. Climate control inside the house would be ground source heat pump. Minus the car the cost could maybe be beaten down to $50k per household. People don't have that spare cash in these troubled times.

Here's my suggestion; if indeed the carbon auction will raise $10bn then give a large chunk of it to electricity retailers and they can install solar devices on private rooftoops. The homeowner pays normal electricity rates. When the house is sold the powerco still owns the solar devices.

Plenty of reasons this won't happen. As always we'll just burn more coal.

4 factors in play to keep in mind:

1. MRET increasing to 20%
2. Carbon trading
3. Solar is getting cheaper every year
4. Solar hot water (who needs firewood)

http://peakenergy.blogspot.com/2008/06/mckinsey-on-economics-of-solar-po...

CSP is cheaper and may always be, but solar PV allows individuals to do something about reducing their own emissions - and thus should be encouraged.

I have thoughts on each of those topics;

firewood - In my case it is for cooking and space heating (it was -8C here last month). Very few have wood stoves with water jackets. What do us bushies do when there is no fuel for the chainsaw and the ute?

cost of solar - I've suggested the real installed cost of solar is more like $10 per watt. It's a long long way to the $1 some claim is possible.

MRET - Penny Wong is mulling alternative targets presumably gigawatt-hours vs gigawatts continuous, thermal vs electrical. I'd add the 20% figure is pointless if coal output goes up prorata ie more renewables and more coal together.

carbon trading - I suspect it will be piss weak with massive copouts. NB Garnaut's press release tomorrow. The only way that struggling businesses and households can afford hi tech toys is if the auction money is handed back. But if there's no money there's nothing to hand back.

A few ideas:

firewood - use an axe.

the ute - convert it to CNG - we'll have enough gas to last the rest of our lifetimes it seems (those of use who are over 35). Alternatively get solar panels and an electric vehicle. Or if you want to go full reversalist, get a draught horse and a cart.

cost of solar - has been artificially inflated in recent years by the silicon shortage (which itself is a result of the G erman program to kickstart their solar industry by subsidising lots of solar panel purchases). Efficiency has been increasing and now the silicon supply has started a big jump, so we'll see costs drop quite rapidly in coming years.

MRET - 20% is a big improvement on the current state of affairs. We should have a carbon tax too to encourage efficiency - cap and trade is less effective. If we end up with more coal being burnt I agree we have failed. Either way we need to keep increasing the MRET number.

garnaut - lets see what happens. fingers crossed.

If you use an axe...

Firewood is the only fuel that warms you twice!
;-)

draught horse - did have one and sold it. New owners found it weighed 900 kg and they have small kids riding it now.

CNG conversion - definitely consider this as the makings for home made diesel are getting harder to source. I'm waiting for Rudd to offer a $2k rebate funded by the carbon auction.

carbon tax - clearly less effective and less equitable than cap and trade. Reasons can wait til another thread.

Once you've thought them up ?

Carbon taxes are simple, transparent and provide certainty for investors.

They also don't create a huge industry with a vested interest in keeping carbon emissions going.

Seems like a winner to me.

OK if done properly cap and trade
- hits the target without fine tuning
- is less regressive on the poor
- 'backs off' in a recession
- smooths incremental change.

Nobody says the parasitic offset industry has to be a feature of cap and trade schemes. Every kind of tax has deductions so under an ad valorem carbon tax bizniss will lobby for and probably get the same kind of favours.

... Carbon taxes are simple, transparent and provide certainty for investors.

They also don't create a huge industry with a vested interest in keeping carbon emissions going...

It is true that they don't create the civil service, nor the government contractor community.

They do, however, greatly increase the vested interest, as above described, of those groups.

--- G.R.L. Cowan, H2 energy fan 'til ~1996
http://www.eagle.ca/~gcowan/Paper_for_11th_CHC.html

I'm not sure it changes matters - governments (and their tax departments administering a carbon tax) collect taxes all the time - all we are doing is shifting the balance between income and other taxes and adding a pollution tax into the revenue mix.

Initially they can reduce other taxes, and as we switch away from fossil fuels (eventually reducing income from carbon taxes) they can switch back to the usual tax mix. No big deal - they do it all the time. The vested interest here (the government and its revenue collection agency) already exists and still collects the same net amount of money (hopefully - in any case creeping big government is a constant problem regardless).

A carbon trading market is another matter - that's a growth area.

It sounds like where you live is cold, so you priobably have box trees like apple box close by, Start by ring barking these, In ten years time you will have an unlimited supply of dry fire wood standing there, To cut them without fuel you will just need a large two person saw, and a block splitter, Apple box is also a very hot buring timber, Second, select trees that are in a position that you caqn easily get to from your house without the use of a vehicle,

Excellent graphic. It just goes to show how piss poor Australia has become in such a field. Finland is doing spectacularly well for the actual irradiance that they have to use. (Norway and Sweden get a mention-in-dispatches.) Anyone know the ins and outs of the Finnish system?

Actually the graph just shows what point solar becomes competitive with local power prices. In our case, we have good solar insolation but cheap coal fired power - these are what define our position on the graph. Carbon trading / taxes will move us further towards the leading edge of solar grid parity.

The Finnish position is about as far away from the grid parity curve as you can get - they have semi-expensive power and low solar insolation - I think you are equating high power prices with "doing spectacularly well".

In that case - I have misinterpreted the graph.

Even with your explanation I am not seeing the 'parity curve'. It would seem to me if they wanted to compare two different types of power they should have two different colour circles. Or alternatively a parity line which represents 1 and a number of others that represent fractions of parity.

It looks to me that it is purely the position of solar power with respect to $/W. ie Finland is producing very cheap power via solar. Or are we not looking at the cost of solar at all but the cost of power in general? If so why bother to have an axis based upon potential insolation?

Care to explain/interpret what I'm not seeing? Cheers.

There are two parity curves - denoted by the shading of the background - one for today (dark green) and one for 2020 (light green).

The left / vertical axis shows the cost of power in each country / region.

The bottom / horizontal axis shows the solar insolation level for each country / region.

The size of the circle for each country / region shows the size of the electricity market.

As the cost of solar drops, the area at grid parity or better grows out from the top right corner to expand down and to the left. The curve shows where the power generated by the solar panels has reached the local power cost - which is governed by the amount of sun received.

Does that make sense ?

I would also like to see the smaller wind generators included in these rebates. The combination of both is essential for me, Solar is secondary I need a small wind turbine much more.

You pesky kids with your solar power! Quit meddling with the suns rays, and get out of the way of big business! Australia has limitless tonnes of coal to sell and burn. No one shall stand in the way of profit, not even the sun itself!!! Mwahahaha!

Strokes his kitty like an evil madman

I was a bit 'up-in-arms' when I heard about the means testing simply due to the message it was sending.

But frankly when you actually look into the effect of the subsidy it probably won't turn anyone off or on to getting solar power anyway, simply becasue people use solar power for two reasons.

The first is necessity ie they don't have grid connected electricity. These people aren't effected by the means testing anyway.

The second reason is that people install solar power is because they are 'true believers'. True believers don't stop and start their belief based upon the dollars. They may curb their implementation but they will do whatever they can afford.

The reality is that only 13000 systems supplying 18 MW in total have been installed under the rebate system over the last 8 years. (On grid 8000 homes, off grid 5000 homes). From those statistics it looks like the majority of the installations have been the minimum 1 kW systems.

FYI, a 1 KW system installed in Brisbane at the moment costs about $13,000. With your 8K rebate it comes down to $5,000.

In terms of the means testing the line in the sand is a taxable income of less than $100,000. I think that equates to the top 5% of incomes.

Frankly if you have a taxable income of $100k the chances are that you are already running a few good tax minimisation schemes anyway. People who are in that league are generally getting more than the 8k back from the government in deductions. They are not going to be too concerned if they don't get the solar rebate.

Well - if you ask the solar industry how many orders were cancelled when the means test was applied, you'll find a large percentage of purchasers are price sensitive...

Remember the means test is household income, not individual income - $100k hits a lot of households - especially ones in the ag bracket likely to seriously consider buying solar panels (ie. homeowners who aren't retired).

A household taxable income of 100k still puts you in approximately the top 5% of household incomes in this country.

The solar industry is really in its infancy, and unless supplanted by something better it should continue to grow. However as with any business the owner needs to look a the market and if supply is keeping up with demand then the potential for growth is limited.

Frankly the majority of the domestic solar industry are opportunists who are only supplying the installation and are buying the panels in bulk. It is the same business model that dozens, if not hundreds of companies embarked upon during the water crisis in SE Qld. Most of businesses shut up shop very quickly because the longevity just wasn't there.

It is not necessarily a bad thing being opporunistic because you need people with a bit of reckless abandon to be a first mover in any industry. But if you are basing your business model on government subsidies you are always going to come a cropper.

Also I'd like a $1 for every industry/company in this country who cried poor because the government took away their subsidies and/or threatened to...ie Gunns, Mitsubishi, Toyota.....the Doctors....:)

The solar industry will grow as costs drop, but for now it has been derailed here.

There are a lot of things being subsidised out there - the solar industry is one of the last that should be taken off the handout line - if they'd stopped spending hundreds of millions on the fossil fuel industries first I wouldn't be complaining.

I will grant Rudd that he has stopped subsidising the american oil war in Iraq, one of my main gripes about his predecessor.

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Ok, seems to be working now.

Gday all. I have been veiwing this site for a couple of weeks now and have found it extremely informative and interesting. I am in agreement with the general tome of the forum regarding peak oil and the problems we will start (are starting) to face.

However, I must disagree with the solar petition.

IMO, the non-means tested rebate was an unjustifiable waste of money, unlikely to ever achieve the spread of cheap solar tech for the masses.

Our household is marginally below the means-test threshold. We are near the top of the rebate allowable bracket but still do not have a snowballs chance in hell of affording any worthwhile amount of rooftop panels even with the rebate. It is just too expensive.

The only thing the rebate was achieving was to use taxpayers money (some of it taken from the lowest taxable income earners) to pay for cheap solar panels for a very small handfull of high income earners. Propping up this little niche market would be most unlikely to ever create the economy of scale needed to bring the price down and make it affordable to all.

Dipping into the nations coffers to pay for the wealthy (who could have afforded it anyway) to have cheaper electricity is a rather obscene form of middle/upper class welfare.

If the solar schools thing gets properly underway, that may well end up creating the economy of scale necessary to eventually bring prices down. Cheaper electricity for the schools that educate our children might be a good start for the industry.

I think I've said this before, but just to repeat - if they ditch all the subsidies the fossil fuel industry enjoys then fair enough - forget about subsidising solar panels for the middle class.

Until then, it seems like a reasonable way of spending taxpayer funds when compared to a lot of the other waste that goes on. the amount being spent was triffling.

(Up until recently I would have also whinged about the cost of helping the yanks occupy Iraq, but at least Rudd put a stop to that).

I agree that solar schools are good though...

I agree that it seems unfair that the fossil fuel sector enjoys generous subsidies but let's not forget that this is a sector that:

(a) employs large numbers of people
(b) provides most of the countries electricity (currently)
(c) earns some fairly juicy export revenue

It is so worthwhile that subsising it makes sense to governments on both sides of politics.

RE solar schools: I actually work at a school, so I think I might pester administration to take up the solar grant and try and get the ball rolling. Probably over 90% of a schools energy use is during the day so rooftop panels could really make a difference, long term.