Photographer :
RaeA @ flickr
Lack of investment and bungled policy have prevented solar power from really taking root in Australia, leaving it as one of the most expensive renewable energies, and passing up significant opportunities to develop the ‘green collar’ economy, reduce our CO2 emissions and become a global leader in this industry. Indeed, Australia has fallen behind other countries, in particular Germany, and we don’t even have the excuse of miserable weather!
Why solar makes sense
Solar power would appear to be the perfect answer to kick Australia's coal habit and help us to transition to a low-carbon economy. Alongside California and Spain, Australia enjoys some of the highest levels of reliable sun on the planet.
Solar technology is low-risk compared to nuclear and can be adapted for almost every conceivable use, from vast solar plants that power entire towns, to rooftops, window panes, streetlights, and even the solar-powered golf buggy. New technologies are vastly improving the efficiency and flexibility of solar; recently scientists developed minute solar cells that could potentially be sprayed onto any surface. We may soon see ‘Solar in a Can’ on our supermarket shelves.
The final argument for solar is that it makes good economic sense. Solar is experiencing extraordinary growth, with global revenue for the industry expected to quadruple from $25 billion in 2006 to $100 billion in 2010. Several companies have emerged on the solar scene, the most spectacular success story being Q-Cells, which last year overtook Sharp to become the world’s largest producer of silicon solar cells. In 2007 the company grew by 59%.
Solar also has the potential to create thousands of jobs in the shift to a ‘green collar’ economy. However, companies have shunned opportunities to set up business in Australia in favour of far cloudier countries (recently Canada), and are shifting production facilities offshore, due to a perceived lack of business incentives and an unwillingness to regulate in favour of renewables.
The lost decade
The 1990s and early ‘noughties’ represent a lost decade in Australian solar. While Australia was previously among the world leaders in solar energy, over the past 15 years it has fallen behind. Australian researchers who pioneered solar technology continue to break new ground, but have largely relocated overseas due to lack of support back home. While other countries have pushed forward, the Australian government has been shuffling around confused and inconsistent policy.
Let’s look at the German success story. Germany has the largest and most successful solar program in the world, generating over half the world’s solar electricity, employing around 40,000 people, and cutting carbon emissions by roughly ten million tonnes each year. Half a million German households have solar electricity systems on their rooftops (compared with fewer than 5,000 in Australia), and large scale systems have been installed in former farming areas. How did they bring about this technological revolution?
Crucial to this growth is the policy framework the Germans have implemented: a solar ‘feed-in tariff’, which guarantees owners of solar systems a good rate for all electricity that is fed back into the electricity grid for 20 years. This makes buying a solar system a good economic decision, as well as boosting ‘green cred’—giving solar owners confidence that they will receive a return on their investment. The return is paid for by placing a small charge (around 1%) on everyone’s electricity bill.
While the rest of the world was busy investing and developing the technology, Australian governments have been cutting funding and shuffling subsidies and rebates on solar initiatives. After introducing a rebate on household solar systems at $8250 in 1999, the Howard government fiddled with the figures repeatedly, shaving the rebate to $7500 in 2000, then $4000 in 2003, before increasing it to $8000 in an eleventh hour attempt to establish some green cred in the lead up to the 2007 federal election.
During the election campaign, Kevin Rudd promised solar panels for all, but then slapped a $100,000 means test on the scheme, before scrapping it altogether in favour of Renewable Energy Certificates. Constantly changing policies create uncertainty for businesses which sell and install domestic systems and the solar industry complained of cancelled orders and laid off workers.
A further problem is that means tests confuse environmental policy with social policy, and frames access to solar as a class issue. The purpose of the rebate isn’t to reduce inequality, but is a tool for reducing our greenhouse gas emissions. What really matters is every kilowatt hour of clean electricity, every tonne of carbon saved. For solar energy to make a meaningful contribution to Australia’s carbon footprint it needs to be rolled out on a wide scale. And that requires the government to offer financial incentives to families and businesses.
Although Australia has lost its world lead in solar energy, it’s not too late if we commit to long-term solutions. With the right mix of appropriate, effective initiatives, Australian solar has the potential to grow rapidly. The message from over in cloudy Europe is that we need to get the system right first.
How do I know this?
Bernard Keane, ‘The solar wars: hidden handouts for polluters’ (17 December 2008).
Crikey.com. Available at:
http://www.crikey.com.au/Politics/20081218-Solar-wars.html
Martin Green, Solar: The Energetic Entrant (7 August 2006).
Australian Policy Online. Available at:
http://www.apo.org.au/webboard/results.chtml?filename_num=94272
Peter Mares, Solar policy trapped in State shadowlands (27 November 2008)
Inside Story. Available at:
http://inside.org.au/solar-policy-trapped-in-the-state-shadowlands/
Bob Johnstone, ‘Solar stuff-up’ (8 October 2008)
Australian Policy Online Available at:
http://www.apo.org.au/webboard/results.chtml?filename_num=234655
Royce Millar, ‘Solar industry cash dries up’ (27 January 2009)
The Age http://www.theage.com.au/national/solar-industry-cash-dries-up-20090126-7q08.html?page=-1 
