Around more than 100,000 solar power systems were installed in Australia last year which is more than in the previous decade combined.

The growth in industrial-scale renewable power, due to confusion for the policy that how the industry would be subsidized was “modest” in the year to the end of October.

Yesterday the Industry group Clean Energy Australia said that the rooftop solar photovoltaic systems were becoming the “Hills Hoist” of the 21st century, driven by generous state and federal government subsidies.

Huge  increase in the employment, and projected investment of more than $20 billion, is being driven by the Federal Government’s target to have 20 per cent of the nation’s power supplied by renewal sources by 2020.

“Much of this growth will be in regional Australia, creating employment opportunities and an economic boost for towns and communities,” the report says. “In 2009-10 alone, clean energy in Australia generated just under $1.8 billion in investment.”

About 55,000 jobs would be created in the industry by 2020, 8085 more than what it is at present, it was predicted by the group’s report 2010.

The current proportion of Australia’s electricity production generated by renewable means increased significantly to 8.67 per cent, however this increase was largely driven by a 15 per cent increase in hydroelectric generation due to good rainfalls.

Down from 993MW the previous year, the growth in industrial power generation was just 210 megawatts (MW).

The report says that the “Policy and investment uncertainty played a major role in the drop in new projects in 2010 compared with the year before”.

The success of household renewable energy such as solar energy and solar hot water in 2009 led to an oversupply of renewable energy certificates (RECs). With a glut of RECs in the market, the price remained low. For large-scale projects this REC price is critical. “Combined with the financial crisis, the situation made it extremely difficult for developers to secure financing.”

The Council said that the REC scheme will be split into large and small energy suppliers from January 1, 2011 and it “should go a significant way towards returning some stability and supporting renewable energy investment in Australia”.

For latest news and updates Contact Us