Climate Change Minister Greg Combet says this could reduce power bills by up to $100 million next year.
He said there was still high demand for solar photovoltaic (PV) systems, so the federal government would phase out its Solar Credits mechanism six months early, on January 1, 2013.
"This will lower the impact of the high uptake of solar PV on electricity costs for homes and businesses," he said in a statement.
He said that would strike a balance between easing the pressure on prices and supporting the households and suppliers who install solar.
"The overall reduction in electricity bills is estimated to be in the order of $80 million to $100 million in 2013," he said on Friday.
Mr Combet said the installation of small-scale systems and solar hot water heaters continued to be supported under the Renewable Energy Target scheme, with solar PV systems benefiting from generous arrangements that provide support for 15 years worth of generation upfront.
The Energy Networks Association said the government had realised the average electricity customer was paying a high price to fund subsidies for domestic solar systems.
But the Australian Solar Council slammed the decision as unnecessary and badly timed.
Demand for household solar has fallen sharply since the government reduced support for solar and state governments wound back feed in tariffs, and there are no indications demand would have picked up, says John Grimes, chief executive of the Australian Solar Council.
"This is a knee-jerk reaction to a non-existent problem and a pre-emptive strike on Australian families who want to install solar to cut their power bills", Mr Grimes said.
Clean Energy Council spokesman Russell Marsh said the cost cuts stemming from the announcement should effectively mark the end of the review of Australia's 20 per cent Renewable Energy Target.
"The changes remove the effect of the multiplier for solar panels and erode all arguments for further changes," he said.
"The solar industry now urges the federal government to wrap up the current review of the scheme to deliver much-needed stability to the sector."
heraldsun.com.au 27 Nov 2012
The installation of solar electricity is supposed to help the environment, lighten the load from electricity companies hence making electricity cheaper?
Another lie perpetuated by the authorities.
Once people install Photovoltaic cells on domestic roofs, the electricity tariff rises, something that the government does NOT tell you about.
The Queensland government quite clearly stated that it is not installing solar panels, as it is too expensive to produce electricity via that format.
Clearly actions speak louder than political lies, and the government is not serious about the so called reduction of a 'carbon footprint' as coined by the political leaders.
It is difficult to believe that the corporate media has not debunked this fraud publicly, something the general populous are all to aware of already.
Another lie that no corporate media outlet is prepared to tackle.
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