PHOTON International The Photovoltaic Magazine

Cap on Australian PV program drastically reduces PV rebate approvals

Following a monthly cap put on money available for an Australian government PV rebate in February (see PI 4/2003, p. 46), approvals for on- and off-grid systems fell 90 percent from 180 in January to just 18 in February.

	© Pacific Solar Pry Limited
Smiles: Without more funding, don't expect too many more happy grid-connected families in Australia.

The ceiling, imposed throughout early February by the Australian Greenhouse Office (AGO), was due to a surge in January requests brought on by a 23 percent electricity rate increase in South Australia. The move was taken to stretch out the funding, originally intended to last through mid-2004. But according to Peter Lawley, business manager of the PV inverter manufacturer and integrator Pacific Solar Pty Ltd., even with the cap, the money will probably only last till late in 2003. The renewable energy industries association, the Australian Business Council for Sustainable Energy, has criticized the cap, saying it would bring the country's PV industry »to a grinding halt.«

While Australia also funds the Renewable Remote Power Generation Program (RRPGP), which provides subsides for off-grid systems – including PV – to replace diesel-generated electricity, the PVRP is the only program in the country with any money for on-grid systems. On-grid approvals, which have averaged 32 percent of the total since the program began in 2000, more than doubled to 69 percent from September through February. The PVRP offers a per-watt rebate of $5 AUD ($3.02 USD) for new systems, and $2.50 AUD ($1.51 USD) for upgrades.

Senator Lyn Allison of the opposition Australian Democrats, which was instrumental in setting up the PVRP (see PI 2/2001, p. 26), says she is negotiating with the ruling Liberal Party for an extension. She declined to give any details, although in February she told PHOTON International she saw little hope on an extension. An industry source says government representatives have indicated interest in what is being called a PVRP »bridging program,« possibly to be announced ahead of the 2003/2004 national budget which comes out on May 13.

In the meantime, Lawley says Australian members of the PV community were preparing to apply for government money in April to create a PV roadmap through 2010. A decision on funding is expected by July. Development of the roadmap would then be completed by the end of the year, he says.