The New South Wales Government has scrapped its plan to reduce the solar rebate tariff after household and business stakeholders conducted a month-long campaign against the planned cuts.

 

The Government failed to secure the requisite support from the Christian Democrats and the Shooters and Fishers parties that would have seen the rebates reduced from 60c to 40c per kilowatt per put back into the grid.

 

The solar program, started in 2009, attracted 160,000 households, far above the initial estimate, causing a blowout  in the cost of the program to $1.4 billion.

 

“I wanted to do everything possible to reduce the cost to taxpayers of the solar bonus scheme and keep a lid on electricity prices,” O’Farrell said in the statement today. “However, I am a realist and there is no point putting up legislation to the upper house which is going to be rejected.”

 

The Clean Energy Council, which represents the industry in Australia, said today that it welcomed the decision.

 

“The new government has inherited a difficult situation, but it has honored the investment of solar households,” said Matthew Warren, the group’s chief executive officer.

 

O’Farrell claimed that the planned changes to the tariff scheme would have seen the Government save up to $471 million