Who’s in charge here? Solar subsidy shakeup begins with accreditation question

The Clean Energy Regulator has kicked off a major overhaul of the federal government’s rooftop solar subsidy program, calling for applicants to take over the role of accreditation scheme operator from the Clean Energy Council.

In a notice issued on Monday, the CER says it is seeking applications for installer and designer accreditation scheme operators under the Small-scale Renewable Energy Scheme (SRES).

Currently, the Clean Energy Council (CEC) oversees the process that determines and the regulates how companies and equipment qualify for the the national SRES scheme, which offers rebates on the cost of installing rooftop solar and solar hot water systems.

But a major review of Australia’s rooftop solar sector, commissioned by former federal energy minister Angus Taylor in mid-2020, last year recommended responsibility for SRES accreditation be shifted away from the CEC.

The review found that the CEC – having “undertaken its regulatory roles diligently over a long period” – lacked the resources and the investigation powers to continue in the increasingly complex role until the SRES is wound up iun 2030.

“As its primary role is as an industry representative body, it doesn’t have all the investigative, intelligence and in-house litigation capability of a regulator,” the report said.

“There may be the perception of a conflict of interest with an industry body trying to take enforcement action against parties who may be its members.”

The review determined that a single regulator with the statutory powers and capability of a Commonwealth Regulator – that is, the CER – would be a stronger deterrent to non-compliant behaviour and enable more effective enforcement.

And it said this finding was supported by the majority of stakeholders engaged with during the review – albeit with varying views on whether to have singular body or multiple bodies to take up the roles of accreditation.

More than a year later, this detail of the changeover process appears still to be a point of contention, with the CEC issuing a warning that multiple accrediting bodies will be “to the detriment” of both the industry and consumers.

“At a time when consumers are looking to install rooftop solar to offset soaring energy bills and reduce their carbon footprint, measures proposed by the Clean Energy Regulator threaten to increase the risk of confusion,” the CEC statement says.

“A single accrediting body would result in greater responsibility and accountability to respond to and address the broad range of emerging and associated challenges and issues that arise in the industry,” the statement continues.

“This responsibility would be less likely to occur if multiple accrediting bodies existed. Furthermore, consumers with similar complaints need to achieve comparable outcomes.

“The Clean Energy Council welcomes continued innovation and reflection in the regulatory space, but not at the expense of consumers and the industry.”

For the CER’s part, its call for applications suggests it is undecided on that point, in that it is seeking applications for “one or more installer and designer accreditation scheme operators.”

The notice does stress, however, that the successful party or parties “will have an ongoing relationship with the CER” and must comply with all relevant regulatory requirements.

The CER says applications, which will open in mid-December for three months, will be accepted from a range of “legal entities,” including: individual/sole trader partnership companies; body corporates; sole director companies; consortia; trustees, and; companies limited.