The Rudd Government's decision to means test the solar panel rebate could destroy Australia's fledgling solar energy industry, China's richest man solar billionaire Zhengrong Shi has told a Senate inquiry.
Known as the ''Sun King'', the former University of NSW engineer and senior research scientist now heads a Shanghai-based global solar empire worth $7.6 billion.
His company Suntech, which started in 2001 with backing of $US6million ($A6.3 million) from Chinese investors after failing to attract Australian Government support, is now the world's largest photovoltaic manufacturer.
It employs 8000 people, has grown at an annual rate of 227 per cent in the past three years, and is the solar energy provider for the ''Bird's Nest'' stadium at next month's Beijing Olympics.
Dr Shi has described the Federal Government's recent decision to impose a $100,000 means-test threshold on the $8000 rebate for solar panel installation as arbitrary, unjustified and an unnecessary invasion of privacy.
''The means test will only slow down the goal of the rebate to further develop clean energy and assist solar power to reach grid parity ... [it] is contradictory to the Government's commitment to renewable energy as a major element in the fight against climate change,'' he said.
It would also act as a disincentive, creating fears about the security or unauthorised use of private income details recorded on databases.
In a written submission to a Senate inquiry into solar rebate protection, Dr Shi said the Australian arm of his company, Suntech Power Australia which was established in December last year, fully supported proposals to ''bring solar to low-income households, but via a different avenue than a means test''.
The Senate's environment committee is investigating the impact of the Rudd Government's 2008-09 budget decision to limit eligibility of the $8000 solar panel installation rebate to households earning less than $100,000 a year.
The inquiry has already received 130 submissions, with most calling for the means test to be scrapped.
But Federal Treasurer Wayne Swan has emphatically ruled out any review of the decision. Federal Environment Minister Peter Garrett has also defended the means test, claiming that solar has not ''suffered as a consequence of our action because this Government has produced more support for solar than any other government''.
Dr Shi has urged the Government to create a separate direct assistance program, similar to one already operating in California, to help low-income residents switch to solar photovoltaics without increasing monthly expenses.
''We understand the budgetary circumstances that led to the introduction of the means test. We support the Government's effort to curb inflation and put downward pressure on interest rates.
''However, we are concerned that the means test has the potential to undermine the success of the rebate program and the growth of Australia's solar industry,'' the Suntech submission says.
It argues that solar panel rebate recipients ''are the pioneers in our renewable energy sector'' and are helping transform the market and make solar energy systems more affordable.
''The solar rebate was not designed as income assistance, or social security measure. The purpose of the rebate was to offset the start-up costs of installing a power system, thereby encouraging Australian home owners to invest in solar technology.''
Dr Shi, who developed many of his solar thin-film technology patents while working at the University of NSW, remains an Australian citizen. His global solar fortune has made him Australia's fourth-richest man, and The Guardian newspaper recently named him among ''50 people who could save the planet''.
About 10 per cent of Suntech's sales are to China, with 80 per cent of solar products going to Europe, particular Germany.
During numerous recent public talks, Dr Shi has repeatedly stressed solar power ''and other alternative energy is definitely the answer to sustainable development of human life, especially to resolve global warming''.
In Melbourne yesterday, the Senate inquiry also heard evidence from Victorian secretary of the Electrical Trades Union, Dean Mighell, who was expelled from the Labor Party.
In a written submission, Mr Mighell said growth in uptake of solar energy had sparked interest among registered electrical contractors to invest in expanding their training to establish new solar installation businesses.
As a result of the means test, more than 50 per cent of jobs had been cancelled because people could no longer afford to install photovoltaic panels.
Email a friend