Australian Solar Report Stresses Long Term Success

The residential solar photovoltaic (PV) industry has experienced a rapid growth cycle but is now facing dramatic changes that threaten the stability of some businesses according to an industry survey released today by the Sustainable Energy Association of Australia. The survey of SEA members to gather the views of owners and operators of businesses on the status of their industry, with analysis and reporting done independently by HAC, a consultancy specialising in energy and carbon issues for corporate, government and non-profit organisations of all sizes.

As a business chamber, SEA expects that growth in the sustainable energy market will ultimately result in competition between businesses that will have winners and losers. Markets will always change and evolve, and competitive markets with businesses vying for sales is better news for the customer.

"˜Certainty and consistency in policy approaches using market mechanisms to stimulate the renewable energy market are arguably more important than the size of incentives, and unfortunately there has been confusion in implementation of policy by governments around Australia between these two things that has had negative impacts on businesses' says Prof Ray Wills, SEA Chief Executive.

"˜As renewable energy technology falls in price with the global ramping of production, we should expect to see government support scaled back as a measured response to maintaining the growth of the renewable energy market,' says Prof Wills.

The survey also shows many solar businesses expect solar PV to hit retail grid parity (the point when no subsidy will be needed to underwrite the commercial installation of solar panels) potentially by 2015. However, in the interim period the industry will require some form of price support, albeit gradually declining over that period, to sustain the value and capability of the industry.

While recent changes to the market are causing pain for some solar business, from a customer perspective this is a great time to buy because all solar retailers will be even more competitive in their pricing to move inventory. And with the price of electricity for both domestic and business customers increasing, solar panels remain a good idea as they deliver electricity that, combined with existing Federal Government rebates, can potentially pay the investment in panels back within 6-7 years, with electricity sourced from those panels after that point in effect free.

If a home owner uses all of the energy they generate from solar panels in their home, that electricity is worth in the Perth market a minimum of 21.7 c kWh. For enterprises on a business tariff, this may be worth even more. And of course it is a growing benefit saving money into the future because every future price in electricity increases the value of electricity generated on the roof of the new home.

There is an additional benefit to installing solar - we know that PV owners are also becoming more energy wise and actually manage their electricity use better, reducing electricity usage by on average 20% compared with homes that don't have solar installed. For builders working toward 6-Star housing building standards and courting home buyers who want the best energy outcome in their home, this is an additional selling point - buyers with solar gain an additional opportunity to future proof their investment and save money. And installing solar continues to make a difference - installation of renewable energy on homes is displacing the need for new fossil fuel based generation, while helping households offset the rising price of electricity.