16/05/2008 - The booming solar power industry will be "totally destroyed" by a federal budget decision to limit who can claim a $8,000 rebate, suppliers say.
Only households earning less than $100,000 will be eligible now for the rebate, aimed at offsetting the cost of installing solar panels to generate electricity.
The opposition says it will not rule out blocking the move in the Senate.
Phil May, co-director of Canberra solar installation firm Solartec Renewables, said those households, generally, could not afford solar panels anyway.
"They have totally destroyed (the solar industry), absolutely and totally ruined it," May said.
"It really is just heartbreaking. It's a real slap in the face for people who want to do the right thing."
May charges $22,000 to install an average-sized system; the smallest costs $13,000.
Most of his customers earned more than $100,000 and he expected the means test would cut his business by 70-80 per cent.
Orders were already being cancelled after Tuesday's budget and May said he would soon be forced to sack two of his five staff.
The rebate, previously not means tested, was introduced to encourage take-up of solar panels and bring down the cost of the technology.
Opposition environment spokesman Greg Hunt says the new means test will slash orders for solar panels and put installers out of work.
The $100,000 cut-off was far too low, he said.
"It's mums and dads on $51,000 each who will now be asked to pay $12,000 - $15,000, or even $20,000, to put a solar system on their roof."
Solar panels cut greenhouse gas emissions and should be encouraged, Hunt said.
The coalition would move to set up a Senate inquiry into the means test as soon as possible.
Hunt did not rule out the opposition trying to block the measure in the Senate, although it is not clear if that would be possible given the means test became effective at midnight on budget day.
At the time Environment Minister Peter Garrett said the means test would ensure the rebate went to households that needed it most.
"The government's investment in solar panels is responsible and fair, making sure funding is directed to households who struggle with the upfront costs of solar power panels," he said.
The solar panel rebate was now in line with the rebate for solar hot water heaters, which is also means tested to $100,000.
Solar hot water heaters are much cheaper than solar panels.
Source: AAP NewsWire
