A rebate for solar panels is proving so popular there are concerns it could be axed or cut back.
Households earning less than $100,000 qualify for an $8,000 rebate from the federal government if they install roof-top solar panels to generate electricity.
But an extraordinary surge in applications has led to Climate Change Minister Penny Wong refusing to guarantee the rebate has a future.
She won't even say if the rebate will be offered in three months' time.
The government is receiving 30 times as many applications for the rebate as it had budgeted for, a budget estimates hearing was told on Tuesday.
Cheaper panels, special deals and concern about climate change are seeing more than 1,000 applications lodged each week.
The government had only budgeted for 6,000 installations for the entire financial year.
In this year's budget, the government controversially decided to means-test the rebate to reduce demand.
Liberal Senator Simon Birmingham told Tuesday's hearing he was concerned the government would take further steps to restrict the rebate as the applications flooded in.
Ross Carter from the government's Renewable Energy Efficiency Division said the government would meet demand for now.
"Future support for the solar industry would be considered in the context of the national energy efficiency strategy, and the government's response to the (emissions trading) green paper," he told the hearing.
Senator Wong repeatedly batted away questions about how long the rebate would continue for.
She would not guarantee the rebate would still be in place in January, or for the full financial year.
Senator Birmingham said the hedging was concerning.
"It's irresponsible," he said.
"It is creating a lot of uncertainty in the (solar) industry."
He said there was a mad rush for solar panels because people were worried about the rebate's future.
Senator Birmingham said he feared the government would axe the rebate, reduce its value, or drop the income threshold for the means test.
Bureaucrats told the hearing they received just over 1,000 applications for the rebate each week, and about 200-300 installation reports.
They said there appeared to be a bottleneck, which could be caused by the industry - and the government - struggling to keep up with demand.
The average solar panel installation cost $14,600, not including the rebate, and is a relatively small 1.22 kilowatt system.
aap 21 Oct 2008
The rebate is a JOKE, as is the 1.22 kw system.
IT IS NOT ENOUGH TO POWER AN AVERAGE HOUSE.
see : http://corpau.blogspot.com/2008/08/solar-going-green-good-for-your-green.html
YET HEAPS OF PEOPLE BOUGHT IT.... JUST LIKE THE CRAPPY iphone !
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