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To: Prime Minister
Mr Abbott Please Don't Slash the Solar Subsidy
Dear Prime Minister
I am writing about the Renewable Energy Target.
It was never mentioned during the election campaign that this scheme was going to be tampered with or repealed.
You were so harsh on Julia Gillard about broken promises.
I understand that in the medium term, the RET will actually result in lower electricity prices for all consumers.
I also understand that if the RET was to be tampered with, that Black Coal is set to be the big winner.
The RET is perfect as it requires dirty polluters to have a minor proportion of their energy from clean energy sources.
I believe the future energy source of Australia and the world is the sun - not coal.
The renewable energy industry employs 20,000 people and now these jobs have great uncertainty around them.
I am asking you to please leave the RET alone and allow the solar panel industry to get on with business.
Thanks and regards
Why is this important?
The Australian solar industry has been rocked by a Federal Government announcement that the solar subsidy could be repealed or at best, cut by up to 93%.
The Abbott appointed Renewable Energy Target (RET) Panel has provided the Federal Government with its recommendations in the “Renewable Energy Target Scheme Report of the Expert Panel” (RET Report) released 28 August 2014.
The Abbott RET Report has presented us with two options:
1. The first option is to scrap residential and commercial solar subsidies effective immediately
2. The second option is to slash commercial solar subsidies by 93% and residential subsidies by a third.
On page 36 of the RET Report, it states, “that under the current RET scheme, wholesale electricity prices would fall slightly over the period….”
The RET Review’s own modelling paints the truth of the matter on page 38 of the report by showing the winners and losers of repealing the RET:
• Black Coal NPV revenue increases 65% from $18.4 billion to $30.5billion (+$12.1 billion)
• Wind NPV revenue decreases 81% from $17.5 billion down to $3.3 billion (-$14.2 billion)
• Solar NPV revenue decreases 90% from $2 billion down to $0.2 billion (-$1.8 billion)
So in summary, repealing the RET will:
• increase electricity prices
• kill the solar panel industry
• kill the wind industry
• reward antiquated Black Coal
Why Tony Abbott has decided to pick this fight is beyond us at Tindo. The RET scheme doesn't cost the Government a cracker as it is the big polluters who pay for the scheme. Why kill the renewable energy industry, bolster up coal and make electricity more expensive? It just makes no sense whatsoever.
The RET was first legislated in 2000 by the Howard Government with a 2% Renewable Energy Target. In 2009, the Liberal and Labor parties jointly agreed to the expansion of the Renewable Energy Target up to 20% out to the year 2030.
On the back of this bipartisan long term policy and in good faith, the founders of Tindo decided to start up what is now Australia’s last remaining solar panel manufacturer. Tindo has created new jobs and new skills for Australia through its investment in a high tech, innovative and automated manufacturing facility.
Uncertainty is a killer for business.
Tindo hopes a response confirming the continuation of the RET unchanged is forthcoming swiftly from the Government inline with its pre-election promises and commitments.
Tindo understands that over 20,000 jobs in the renewable energy sector are now at risk along with billions of dollars of infrastructure investments being put on hold.
As you may already know, Tindo is currently rolling out a new way of delivering solar to the Australian public through a power purchase agreement program. This Tindo program is supported by the Clean Energy Finance Corporation and seeks to create hundreds of new jobs in South Australia just 5km from the soon to be defunct Holden plant. This multi million dollar scheme is launching at the same time the Government is talking about scrapping the Renewable Energy Target.
Here at Tindo, we remain hopeful that the Federal Government will not break their election promise by changing the RET.
Feel free to send your local member, or even all members of Parliament an email or a letter sharing your thoughts on this matter. Download contact details for all Federal Politicians here http://www.tindosolar.com.au/wp/wp-content/uploads/2014/09/Members-of-Parliament.pdf