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Coalition makes cuts to climate policy

The coalition expects to save $338 million by scaling back aspects of its Direct Action plan, including its planned solar rebate scheme.

Solar panels on a house
Halving the solar panel rebate was among $338m worth of cuts to the coalition's Direct Action plan. (AAP)

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Source: AAP


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The coalition is confident it can still put one million more solar panels on rooftops in a decade despite halving the planned rebate on offer to households under its climate change policy.

The change to the solar rebate program was among $338 million worth of last-minute cuts made to the coalition's Direct Action plan in the lead-up to the federal election.

An incoming Abbott government now expects to spend $2.88 billion over four years on its climate change strategy, revised down from its long-standing forecast of $3.2 billion.

Funding allocated for activities that cut greenhouse gas emissions, like revegetation and improving soil carbon, remains unchanged at $2.55 billion over four years.

The bulk of the savings comes from its decision to halve the $1000 rebate it was to offer up to 100,000 households a year for installing a rooftop solar panel system.

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By cutting the rebate to $500, the coalition expects to save $200 million over the first four years of the scheme and still achieve its goal of installing a million more solar systems within 10 years.

The coalition's climate action spokesman Greg Hunt said the cost of solar panel systems had dropped dramatically since Direct Action was designed in 2010.

"You've got to have a sustainable rebate," he told AAP.

"What industry wants to see is an end of the boom and bust."

Mr Hunt said the scheme would be directed at low-income households, but wouldn't comment on any threshold for the rebate at this stage.

$50 million to develop geothermal power over four years was also scrapped when the Direct Action plan was reviewed in the final days of the election campaign.

Another $60 million on clean energy employment hubs was cut, with $9 million instead going to the National Climate Change Adaptation Research Facility at Griffith University.

Funding worth $100 million for a solar towns and schools initiative will be spread across six years rather than four.

The $2.88 billion set aside for four years of Direct Action is capped, and the coalition has vowed not to spend any more.

Mr Hunt says he's confident Australia will meet its pledged 5 per cent pollution target under the scheme, and within the budget allocated.


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