The federal government has vowed that all the money originally allocated for the solar hot water rebate program will be spent to support the industry.
Labor announced in late February the renewable energy bonus scheme was being axed immediately.
That meant only systems ordered, purchased or installed before February 28 would be eligible for a rebate of up to $1,000.
But junior Climate Change Minister Mark Dreyfus has guaranteed any money left over from the scheme won’t be returned to the budget.
‘The funding allocated for this program remains in the forward estimates,’ Mr Dreyfus said in a letter to Greens deputy leader Christine Milne.
‘I am happy to continue to work closely with you to look at potential ways the available funding continues to support Australia’s solar and heat pump hot water industry to maintain jobs and competitiveness in the short term.’
AAP understands the main options being considered are a new mini funding round or some kind of structural adjustment package.
Some $63.5 million was budgeted in 2011/12 for the solar hot water initiative. A further $24.5 million was earmarked for 2012/13.
Mr Dreyfus said in his Wednesday letter to Senator Milne that when Labor’s carbon tax started on July 1 the solar hot water industry would still be supported in four ways.
The pollution price itself would create a stable long-term market, he said, while additional assistance would be provided via the renewable energy target, the $800 million clean-technology investment program and the $330 million low-carbon communities program.
The Greens initially condemned the government’s decision to close the renewable energy bonus scheme. Senator Milne demanded it be extended instead.
But on Thursday, she was pleased with the ‘constructive discussions’ she’d had with Mr Dreyfus regarding how the government could ensure the ‘great clean energy industry can flourish’.
‘I am confident that, with this new assurance today, the Greens can come to an agreement with the government very soon which will help the manufacturers and installers keep employing people and also help householders embrace this clean, money-saving technology,’ Senator Milne said in a statement.
Opposition climate action spokesman Greg Hunt’s private member’s bill on the scheme was ‘superfluous’ because it only guaranteed the 2011/12 budget allocation and ignored the $24.5 million set aside for 2012/13.
