Australian Solar Subsidies under fire in 2018.

Australian solar subsidies are expected to cost $1.3b in 2018 as the Clean Energy Regulator estimate that 22 million small-scale technology certificates will be created. This will add approximately $100 to the average Australian solar bill. At what point, if at all, do we look at reining these subsidies in? 

Australian solar subsidies

Australian solar subsidies - Clean Energy Regulator
Australian solar subsidies – Clean Energy Regulator (source:

The small-scale technology certificates (STCs) are given to people installing solar panels, and electricity retailers are required to buy them. So although this expected $1.3b will ostensibly be paid by the energy retailers, naturally the cost is passed on to the end user – resulting in even higher electricity bills.

Jeff Bye from Demand Manager in Sydney, a company that trades STCs, was quoted in the Australian as saying this years cost increase means an average electricity bill will raise by around $100:  

“The cost increase (this year) is about $800m and there are 8 million households … so there’ll be a cost impact of around $100 per household. The electricity impact might be $40 or $50 per household but businesses will pass through the additional cost too … That subsidy of $500m last year, or $1.2bn to $1.3bn this year, is added on to everyone’s bills.”

Is it time to abolish the solar subsidies?

Is this fair for renters or apartment dwellers (a rapidly increasing segment of the population)? At what point do we start to reconsider these subsidies?

With the price of solar + storage driving down as the technology gets better and better, there’s certainly going to be a ‘tipping point’ where the market can stand on its own two feet. But with Australian solar growing at an astronomical pace it’ll be difficult to find the right time/method to adjust these subsidies.

According to Energy Minister Josh Frydenberg, the Australian Energy Market Commission found the average cost to households over the past five years was about $29 a year.

“The AEMC forecasts residential electricity prices will fall over the next two years as renewable energy, including small-scale solar supported by the Renewable Energy Target, enters the system,” Mr Frydenberg said. So potentially some of that $100 will be offset by lower prices from the energy retailers. 

His political opponents were a little less hopeful – as backbencher and former PM Tony Abbott fired back after hearing the statistics, saying:

“Australians are paying far too much for our emissions obsession. Government must end subsidies for new renewables,”

Liberal MP Craig Kelly, Chair of the Coalition’s Backbench Energy and Environment Committee, told Chris Smith on 4BC his thoughts on the scheme:

“All these schemes have done is make electricity prices dearer for every single Australian.”

Whilst those quotes can certainly be taken with more than a grain of salt given the abysmal state of Australian politics, it’s definitely worth having a look at these subsidies against the cost of solar, its level of technological maturity, and schemes to help low income earners, renters, and apartment dwellers benefit from renewable energy as well. 


Solar Power for Rental Properties

Solar power for rental properties may start becoming more common as the cost of installs decreases and councils/community groups work on ideas such as giving landlords interest-free loans to install solar on their rental properties. With over 30% of Australia’s population currently renting, we need to figure out a way to make it viable for landlords and renters alike to benefit from renewable energy.

Solar power for rental properties

According to the ABC, 1.8 million Australian homes have PV solar installed on their roof – with a record amount being installed last year. This increase is due to two main factors – rapidly increasing electricity costs and decreasing cost of the actual solar technology.

According to Andrew Reddaway from the Alternative Technology Association, Australia could save 5.6 million tonnes of greenhouse gas if we work on increasing solar panel uptake for rental properties. 

“It’s a bit of a risk of the country dividing into the solar energy haves and have-nots,” Mr Reddaway said. 

Whilst not exactly a ‘two speed economy’, the increasing number of renters mean that we need to have a look at finding ways to get solar installed on these houses. There are obvious ramifications for having a situation where it’s not feasible for landlords to install solar power on properties they own – unfortunately magnanimity / environmental concern aren’t powerful enough drivers for owners to shell out $10,000 for a system. What sort of system would be fair, keeping in mind having solar power on the roof will also increase the value of the property. 

“It’ll be the tenant who sees the benefit on the electricity bill, whereas the person who pays for the solar system is generally the landlord. So the main question is: What’s in it for the landlord?” Mr Reddaway continued. 

Z-Net Uralla, a community group in regional NSW, have teamed up with the NFP CORENA (Citizens Own Renewable Energy Network Australia) to give landlords interest-free loans to install solar on their rental properties. CORENA work with both parties to discuss a fair increase in rent to help loan repayments.

“We are hoping that the partnership can be a model for communities elsewhere to copy,” Margaret Hender of CORENA said.

Solar power for rental properties - Margaret Hender CORENA
Solar power for rental properties via no-interest loans – Margaret Hender of CORENA (source:

The energy inequality currently being inexperienced has led to a few different attempts at trying to bridge the gap. CORENA have their interest free loans, and there are options for renters to install their own portable solar for apartment buildings, as we investigated last year. 

The city of Darebin has been offering interest free solar loans for residents,with repayments added to household rates. 

Are you a renter or a landlord and have any experience with solar power? Let us know in the comments.