Finally the RET Review has been delivered and the outcome is as we all feared. The recommendation is that the renewable energy target be closed to new entrants and the immediate closure (or rapid wind up) of the small scale renewable energy scheme (SRES).

The report has given two options for the large-scale renewable energy scheme – either it be closed to new entrants immediately or modified to the ‘real 20%’ of demand.
The commercial solar market is going to be severely affected with the small scale scheme restricted to systems under 10kW’s rather than 100kW’s.

The SRES supports small commercial solar systems, residential solar systems and hot water systems. If the scheme is closed to new entrants it will add about one third more to the cost of every system. The recommendations damage financial investments to the tune of $10 billion and could cause job losses of around 21 000 people.

“It is inconceivable that the review could objectively recommend slashing the RET when its own economic modelling showed this would lead to higher power bills in the long run, while at the same time smashing billions of dollars of investment,” said Clean Energy Council Acting Chief Executive Kane Thornton.

Bloomberg New Energy Finance says that bankruptcies are inevitable and they believe that the market (especially the large scale renewable energy market) will be dead for up to a decade.

John Grimes from the Australian Solar Council is also fuming about the review calling it a “most dangerous and extreme attack on solar and renewable energy in Australia’s history”.

“The Warburton inquiry has been a complete sham from start to finish,” he said.

The Australian Greens labelled the report “climate denier drivel.”

“I’m glad this dangerous and ignorant report is finally public, so everyone can see it for the climate denier drivel it is. The outcome was determined long ago,” said Greens Leader Senator Christine Milne.

“A strong Renewable Energy Target helps Australia ride the transition to sustainable energy. Without it, we risk falling off the back of the wave and being stuck in a quagmire of ever rising fossil fuel prices. Really, we don’t need to wait and see how the government will respond to this report it commissioned, with a hand-picked climate sceptic at the helm. What we need to do is throw the RET report in the bin.”

Click here to read the full report.

Click here to read an Executive Summary.