The solar industry is preparing a rearguard action to fight the state government’s decision to slash the rate paid to households that generate electricity through roof panels.
Lawyers are preparing to argue that the O’Farrell government is acting outside its constitutional rights by seeking to pass retrospective legislation to cut the fee for a kilowatt hour of electricity from 60¢ to 40¢.
That change is expected to affect 110,000 participants, while an additional 40,000 electricity customers who applied to join the scheme before it was suspended last month will now get a 20¢ rate under plans announced by the Energy Minister, Chris Hartcher, last week.
The solar industry has also started a public campaign, warning of significant job losses among its 8,500 workers. Today it will hold a protest in Circular Quay and it is raising a petition to pressure the government to change the policy.
“We believe Hartcher may have acted outside his authority by changing the rate retrospectively, but our lawyers [Piper Alderman] are waiting to see the exact working of the legislation,” said Ged McCarthy, chairman of the Solar Energy Industries Association.
“This will destroy any confidence in the solar industry and cripple small businesses. People bought solar panels on the guarantee they’d get 60¢ and, even if the Premier reintroduces another scheme in the future, nobody will invest because they know a government commitment is worthless.”
John Grimes, of the Australian Solar Energy Society, said Barry O’Farrell and senior ministers had broken election promises. He cited a letter from the Deputy Premier, Andrew Stoner, in which he outlines the Liberals’ “longstanding opposition to retrospective change”.
“O’Farrell must keep his promise to the NSW electorate and immediately reverse his decision,” Mr Grimes said.
While the retrospective legislation is certain to pass through the lower house, the Greens are attempting to secure the 21 votes needed to block it in the legislative council.
“We believe Labor will vote against retrospective action, which leaves us trying to get the support of two more members,” said Greens representative John Kaye. “Hopefully members of the Shooters and Fishers Party and the Christian Democratic Party understand this is a proposition that will hit small business hard and cost jobs.”
Mr Hartcher said the move to cut the tariff was ”a very difficult decision, and one that was made reluctantly”.
