Could solar subsidies cause safety issues?

Forget storm chasing roofers, what about government subsidy chasers? "When things are for free, every man and his dog gets accreditation and starts installing," says Solar Shop Australia managing director Adrian Ferraretto. And effectively, solar installation is close to free (especially the 1.5 V version).

We all remember the insulation debacle. Subsidies so high that it covered 120%-150% of a standard house's installation costs, so it wasn't just free it was a larger profit for the installers. Installers (both experienced and opportunistic) received lots of training and information about how to do it 'The Australian Government Way' and then set about getting jobs. Coverage of the subsidies was high so there was no shortage of customers, and for a while there it was an easy ride for most insulation installation businesses. So good, that trickier jobs like double stories or flat roofs were left by the way side, installers choosing instead to cherry pick the easy jobs.

Opportunistic businesses popped up all over the place, from insulation batt importers to tele-marketing firms that canvassed for customers over the phone, to teams of marketers going door to door or dropping millions of leaflets through the mailbox. Take up was so high that the market ran out of imported batts. Talk about a massive stimulus package!

The subsidies available initially could be used for either insulation or solar, but not both. Solar carried a hefty excess so most people chose to use their subsidy for insulation - something they could get completely for free and know that solar costs would reduce over time as the technology development costs reduced.

Now that the insulation grant has been removed, the only choice for Australians is whether or not to use the subsidy. People can get up to $6000's worth of rebates for installing solar power to their homes, and already there are reports in the media of shoddy installation jobs and cheap versions of panels being used are increasing, and most reputable businesses being tarred with the same brush as the cowboys. Peter Garrett defended the program back in February and has also implemented a program of checks and audits to address consumer's concerns.

In our opinion, the solar rebates aren't incentivising opportunistic cowboys to enter the market (it's still not 100% free for customers), and most of the companies in the industry are solid, reputable businesses who respect their customers, their safety regulations and the licences needed to do the work. The media reports probably relate to a small percentage of cowboys that are spoiling it for everyone.

Does anyone have any stories relating to excellent or poor experiences with solar power installation?

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  • Hi

    I am a company owner looking to start solar installations. I agree with you 100%!
    There would not be enough profit loop holes in the solar industry to attract these people who do shotty jobs. The courses, in total, are approx. $2000+ and not to mention the trade/business certifications.

    I know I take pride in my work and my company....I hope Gillard helps weed out the trouble makers!

    Daniel
    Envirolec Solutions Pty Ltd

    over a year ago by Daniel79
  • Oh good, I'm glad you agree! It's interesting that you mention the high cost of the training courses - to join the insulation register it was usually free: all you needed was an ABN and ONE of the following...

    - prove you had 2 years experience
    - be a licensed tradesperson (plumber, sparkie etc)
    - undergo 2 days training

    Plus apparently only one person in the company needed to be on the register, not the person doing the work.

    I'm guessing with the solar grants you couldn't have a team of people doing work on your behalf - that's another big difference :)

    over a year ago by liz_brock
  • PS. Good luck with your expansion if you do choose to go ahead with it!

    over a year ago by liz_brock
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