death by 1000 cuts
May 21st 2008 00:06
or should i say, $8,000 cuts.
I deliberated long and hard before writing this post. I do think the new government has great intentions of helping the environment, and they probably didn't think through the consequences of this budget initiative, unfortunately, the consequences are proving to be devastating for our fledgling solar industry. This is not intended to be a sledge, just a post to raise awareness, so possibly an error can be corrected.
In the recent Budget the government introduced a means test for the $8,000 subsidy for houses installing solar panels, people who earn an income of over $100,000 are now no longer eligible, sounds reasonable, the rich don't need subsidies. What they didn't realize was that a HUGE percentage of the people who could actually afford the extra money required to install solar panels over and above the subsidy, $13,000 to give a rough number, were people earning over 100k, NOW THESE PEOPLE ARE CANCELLING their orders en masse. You see most people who earn that also have a mortgage and big bills to pay, they still need subsidies on really big ticket items such as this. Here is a snippet of the what was built and is now being decimated
These people aren't whingeing or crying poor me, they just can't pay the extra, especially given interest rates and fuel, helping the planet has become a "luxury" they can no longer afford.
If only the solar industry had as much money as the companies that destroy the planet, so they could head off to Canberra and pay the lobbyists millions to fix this, somehow I don't think this can happen. What a shame, hopefully its not the death of an industry.
Here is a link to the source article where the quote is from CLICK HERE
cheers
Louie
I deliberated long and hard before writing this post. I do think the new government has great intentions of helping the environment, and they probably didn't think through the consequences of this budget initiative, unfortunately, the consequences are proving to be devastating for our fledgling solar industry. This is not intended to be a sledge, just a post to raise awareness, so possibly an error can be corrected.
In the recent Budget the government introduced a means test for the $8,000 subsidy for houses installing solar panels, people who earn an income of over $100,000 are now no longer eligible, sounds reasonable, the rich don't need subsidies. What they didn't realize was that a HUGE percentage of the people who could actually afford the extra money required to install solar panels over and above the subsidy, $13,000 to give a rough number, were people earning over 100k, NOW THESE PEOPLE ARE CANCELLING their orders en masse. You see most people who earn that also have a mortgage and big bills to pay, they still need subsidies on really big ticket items such as this. Here is a snippet of the what was built and is now being decimated
A solar system which will take care of about 50% of the typical household consumption still costs $13 000 after the rebate, and 80% of the purchasers of grid-connect solar power systems in the last 12 month were households earning over $ 100 000. So the $8000 rebate allowed the industry to go through a mini boom, with a number of positive outcomes.
Firstly the price of systems came down by more than 10% over the past 12 months, because manufacturer discounts increased as buying volumes increased, and in order to stimulate business and because of a competitive market, the industry passed these saving on. Secondly a reliable network of solar installers started to spread across the continent, stimulating small business and creating the vital infrastructure in the field of local renewable energy, which Australia will need - should we be at all serious about tackling climate change. Thirdly, the purchasers of solar power systems started to monitor the use of their own electricity consumption, which in households over $100 000, with large fridges and plasma TVs can only be a good thing.
Firstly the price of systems came down by more than 10% over the past 12 months, because manufacturer discounts increased as buying volumes increased, and in order to stimulate business and because of a competitive market, the industry passed these saving on. Secondly a reliable network of solar installers started to spread across the continent, stimulating small business and creating the vital infrastructure in the field of local renewable energy, which Australia will need - should we be at all serious about tackling climate change. Thirdly, the purchasers of solar power systems started to monitor the use of their own electricity consumption, which in households over $100 000, with large fridges and plasma TVs can only be a good thing.
If only the solar industry had as much money as the companies that destroy the planet, so they could head off to Canberra and pay the lobbyists millions to fix this, somehow I don't think this can happen. What a shame, hopefully its not the death of an industry.
Here is a link to the source article where the quote is from CLICK HERE
cheers
Louie
photo courtesy of www.morguefile.com
| 134 |
| Vote |
subscribe to this blog
Comment by Fobzy
Fobz
Comment by Louie
Climate Red
randomthoughts
Phil's Wellness Tips
Comment by Cibbuano
Hunt Famous
Orble Post of the Day
Fat Cult
Techbreak
Comment by Kim L
Diving About
People with higher incomes are going to be the most likely to embrace any (financially) expensive new technology...
I don't mean to stereotype, but these people also tend to be better educated and more motivated to spend on environmental initiatives. The hybrid car is another example of this. It is technology moving in the right direction, but not everyone can afford one...
For people whose income is not over $100,000, the cost of solar PV cells is often unmanageable, with or without the subsidy!
Comment by RubySoho
Music Zone
Thought Zone
I don't think the government was being mean-spirited in revoking the rebate, it looks like they underestimated how much even people in the higher income bracket were relying on it.
Comment by Kelcee Farra
Comment by Louie
Climate Red
randomthoughts
Phil's Wellness Tips
Comment by Louie
Climate Red
randomthoughts
Phil's Wellness Tips
Comment by Louie
Climate Red
randomthoughts
Phil's Wellness Tips
Comment by Louie
Climate Red
randomthoughts
Phil's Wellness Tips
hi i wouldn,t go so far as to sauy Im intelligent
Comment by Mr Nice Guy
Pop Culturist
Pop Rock Factory
First it was a pittance as far as rebates on water tanks (despite the drought) - now this.
Fair enough slug those who chose to buy $100,000 motor cars - but given NSW (and Victoria I understand) are in the midst of an electricity crisis - with privatisation of the grid apparently the only solution - then surely green alternatives are at the very least an alternative.
Don't think that privatisation of the electricity grid and how much the Govt can make from the sale of it has anything to do with it do you . . . oopps there's me being cynical again.
Cheers
Comment by Fobzy
Fobz
Comment by Louie
Climate Red
randomthoughts
Phil's Wellness Tips
i didn't think of it from that agle but now you mention it,...you've got the cynic in me thinking you might be a little bit right.....
Its all well and good to have a 20% target but how about they give us the tools to be able to make it REAL
Comment by Louie
Climate Red
randomthoughts
Phil's Wellness Tips
who knows, news changes fast so i might get some material...pronto