The Australian government’s various efforts to achieve a better participation rate for renewable energy sources are a worthwhile study in both the consumer market and the problems of initiating major change in energy usage. The Federal government is committed to mandatory renewable energy targets including a 20% participation rate in electricity by 2020. Solar power has been receiving a lot of attention, but if you’re an Australian, getting solar panels for your home can be a somewhat confusing experience.

Australia, being a major coal producer and large oil producer, is also mired very much in the fossil fuel ethos, and this situation also represents a very complex political problem. The Federal government decided to introduce financial incentives for Australians to take up renewable energy sources, including a rebate program of up to $8000 for homes installing solar panels.

There are now multiple Federal rebates available across a wide spectrum of options, including:

Rebates for grid connections for residential solar power
Off grid solar power rebates
Solar incentives for business
Solar schools grant
Solar for community buildings
Solar hot water rebates
Solar water pumping rebates
Feed in tariffs
Renewable energy certificates (RECs)
Solar cities initiative

RECs, which are one of the primary measures of the Federal government’s Mandatory Renewable Energy Target up to 2030 are measured at 1MWh. To meet Australia’s energy commitments for 2020, 45 million RECs, 45,000 gigawatt hours, will be required. RECs are redeemable at point of sale as discounts on equipment.

Australia’s state and Territory governments also participated in the renewable energy schemes, mainly solar, including solar thermal and solar photovoltaic schemes. There’s a wide range of local initiatives, varying between states. These are targeted local schemes intended to provide best practice solutions for things like remote energy sources, alternate power generation, and similar high value options.

Criticisms

While solar hot water and solar pool systems have done quite well and been widely accepted, the multiplicity of schemes and types of rebate has been somewhat counterproductive. There are also a lot of qualifiers in terms of types, terms and various bureaucratic processes attached to solar power installation. The criticisms are almost as complex as the schemes.

The most severe criticism has been leveled at the undue complexity and indirect nature of the rebates. Buying a solar pane is easy enough in Australia, but few are convinced that an indexed, multi-government approach is a great way of saving the environment. There are also other infrastructural issues, which haven’t been getting enough attention in the view of many critics. Australia is one of the most highly urbanized countries in the world, with very high demand for energy in the major cities. The grid systems are large, and in some states like New South Wales are costing a lot to upgrade.

The original $8,000 rebate in fact did very well, and was taken up by many homeowners, businesses and schools. The extra levels of complexity created by the new schemes have been low key events on the political scene, attracting little attention. The fact is Australia needs to get a conveyor belt approach working on this subject, not a “boutique” approach. The targets can be met, it’s really a matter of how they’re achieved.

This is a guest post written by Jaks. Jaks is a freelance writer. He is writing on various topics including Business Process Outsourcing