The NEG is coming. Here is what you can do to future proof your home or business.
You may have noticed an increased amount of solar installations in your neighborhood over the past few months. That’s because the solar industry is booming and producing record numbers. But with the proposed National Energy Guarantee policy, set to to succeed the Renewable Energy Target (RET) policy, some uncertainty as to the future of the renewable energy industry has struck the market. Here is our take on renewable energy supply projections, new policies and what you can do to guarantee your home or business is future proofed.
According to the latest information from the Australian Energy Market Operator (AEMO), renewable energy is forecast to supply one-third of Australians’ energy requirements by 2020. This represents rapid growth in the industry as only half that amount was supplied by renewable energy in 2015. May was a record month for rooftop solar installation with almost 19,000 rooftop solar PV systems being installed, which produced 19.9 per cent of consumed energy and saved 2.4 million tonnes of CO2 pollution over the month (the equivalent of taking 9.2 million cars off the road). Now 2 million Australian families have reduced their energy bills and shown their support for the renewable energy movement by installing solar energy systems on their homes.
Solar advocates from organizations such as Solar Citizens, the Clean Energy Council & the Smart Energy Council have recently expressed concern for the impact that the proposed National Energy Guarantee (NEG) policy will have on this thriving movement. Green Energy Markets Director Tristan Edis & Smart Energy Council CEO John Grimes have both declared their dissatisfaction for the NEG’s emissions targets, which, while they are in line with international commitments, are seen to be unambitious. The aforementioned 2020 renewable energy supply target stands strong despite this as it is based on solar and wind farms already under construction or contracted and stable residential installation rates.
Claims have been made that the NEG overlooks the extent to which the RET is responsible for the solar industry’s growth and may impact household’s rate of installation – The government have said that subsidies for renewable energy systems are no longer necessary as the industry is thriving. But this seems to overlook the extent to which the RET is responsible for that growth, as it has supported Australians to install renewable energy systems, the benefits of which are felt by individuals and communities. It’s becoming clearer that the proposed NEG will not include the RET’s system of what amounts to a rebate on renewable energy installations for households and businesses.
The exact impacts of the NEG are unforeseeable at this stage, though there are signs that solar installation incentives may change and impact Australian’s ability to go solar. Our hopes are that Australians will still be seen as renewable energy leaders, reaching record emissions and supply targets and continuing to reap the benefits that solar energy systems produce. The best thing you can do to future proof your home or business is to claim the RET rebate with us while it still lasts.