The Federal Government has made an announcement that it is expected to phase out its solar credit scheme from July 2011 which is a year before it had planned for its closure. This credit scheme was announced after deciding to cancel the solar rebate program. The scheme supports to subsidies the solar power systems by paying to the people for renewable energy generated. Greg Combet, the Climate Change Minister said the scheme will phase out early, as the cost of solar panels are decreasing and most of the state governments have made an announcement of solar energy subsidies.
The government is also planning to reduce the pressure off the electricity prices said Combet. This announcement from the government will also ensure that a higher level help will be still available and also the householders face few expenses from their pocket which will be suitable in balancing the program, he added. Greg Hunt, the spokesman from the opposition climate said the government has taken the earlier warnings very easily about the scheme increasing the cost of the power and changing the market.
Greg Hunt said that they received the warnings before the introduction of phantom credit system and also after the introduction of phantom credit system but during all the time they had declined to recognize the bleedingly obvious. The Clean Energy Council’s Matthew Warren said the industry has sufficient time to correct.
The businesses has got more than 6 mths for planning the inventories to ensure that they have enough stock left with them and also make their marketing strategies for the next coming years. Greg Hunt also said it is a very sensible decision which will also correct the market signals and provide enough time for the industry to alter itself. The system is expected to be phased out by 2014 middle.
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