Aussie industry warns of ‘crisis’ amid rush for rationed state support

Facebook
Twitter
LinkedIn
Reddit
Email
The rationing of solar rebates sparked a protest rally by the parliament at state capital Melbourne last week (Credit: Flickr / Rexness)

Australian associations have joined opposition politicians in urging Victoria State to lift a monthly cap on solar incentives, after claims that August’s quota was fully booked within two hours.

Operators shared dismay at today’s swift allocation of monthly solar rebates, with the Clean Energy Council and the Smart Energy Council claiming they ran out in 106 and 90 minutes, respectively.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The incentives – covering up to AU$2,225 (US$1,566) per solar panel system – were halted by the Labor government in April 2019 and re-instated three months later, albeit with a monthly cap.

The July quota of 3,333 was snapped up quickly after their release, sparking an industry rally in state capital Melbourne last week to protest against the impacts from rebate rationing.

The state government’s decision just days later to retain the cap for August has triggered further criticism, with opposition leader Michael O’Brien slamming Labor’s “incompetence” on Twitter.

“Extraordinary how a policy with decent intentions can – through botched design and implementation – cause such damage to a sector it is supposed to assist,” said O’Brien, a Liberal MP.

Poll exposes fears of closures, job losses

Darren Gladman, director at the Clean Energy Council, joined the critics as he argued the rebate cap is creating a “devastating boom-bust” cycle forcing solar firms to consider closure.

“Along with the industry’s woes, it appears that some consumers were unable to access the system this morning, aggravating those who were trying to take advantage of the program,” Gladman said.

Meanwhile, Australia’s Smart Energy Council polled 60 Victorian solar firms this week and claimed 80% have closed or are concerned they may have to as a result of the rebate changes.

“We told the government their scheme was broken. That customers were missing out. That dozens of solar companies were going broke…The government just dug in,” the Council’s statement read.

When it chose to set the monthly rebate limits earlier this year, the Victoria government said the caps would “ensure the 10-year programme is delivered effectively”.

The aid programme does not only cover solar panels but also solar water heaters (up to AU$1,000 or US$685) and solar batteries (up to AU$4,838 or US$3,314).

As the government noted today, “plenty of rebates” are still available for these two technologies and rental properties even if they have been fully allocated to solar panels.

Read Next

Premium
August 7, 2025
July 2025, the peak of the Australian winter season, saw generation from utility-scale and rooftop solar increase by 12.78% year-on-year in the National Electricity Market (NEM).
August 4, 2025
Australia’s Productivity Commission said the country should phase out subsidies for renewables and replace them with market-based incentives.
August 1, 2025
Western Australia network operator Western Power has confirmed it has granted two more network connection offers to two new large-scale renewable energy projects, bringing its total for 2024/25 to 759MW.
August 1, 2025
Dutch pension fund APG has agreed to provide Octopus Australia with AU$1 billion to support its solar, wind, and BESS portfolio.
July 31, 2025
Lucy Nation has said bp paid the price for proceeding “too quickly,” resulting in its exit from the 26GW AREH project in Pilbara.
July 28, 2025
Australia’s Clean Energy Finance Corporation (CEFC) has announced it has invested a record AU$4.7 billion (US$3.09 billion) in large-scale renewables, energy storage, and transmission projects during the 12-month period ending 30 June 2025.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines