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Small renewable energy businesses have been left ‘out of pocket’ for completed work due to the ‘Small-scale Renewable Energy Scheme’, according to the NSW Small Business Commissioner.
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Renewable energy scheme has left SMEs fighting for compensation: NSWSBC
04 September 2024
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The NSW Small Business Commissioner is concerned about the impacts the ‘Small-scale Renewable Energy Scheme’ (SRES) is having on SMEs after solar businesses expressed that they have been left unpaid.
SRES is an Australian government initiative that encourages investment in small-scale renewable energy.
The scheme was created to help incentivise households and businesses to install small-scale renewable energy systems such as rooftop solar, solar water heaters, and air-source heat pumps.
The NSW Small Business Commissioner Chris Lamont said he has recently received complaints from small solar installers that have not been paid for work completed as part of the SRES.
According to Lamont, the complaints relate to the suspension of Greenbot Pty Ltd’s registration from the SRES, meaning they can no longer create renewable energy certificates.
The commissioner raised the concerns with the Clean Energy Regulator (CER).
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Lamont said some solar installers have not been paid for multiple completed installation jobs that has impacted their cash flow and invoked uncertainty.
“While the scheme is designed to encourage investment in small-scale renewable energy, it has advertently resulted in small businesses being out of pocket,” he said.
“Solar installers acting in good faith as part of this government program rightfully expect to be paid for their work.”
The commissioner has urged the CER to provide practical, up-to-date information for impacted businesses as well as the improvement of the scheme to ensure more businesses aren’t left without compensation.
Lamont said some installers he received complaints from completed work for Emerging Energy Solutions Group Pty Ltd that is now in liquidation.
The CER has been made aware of the issue, despite installers needing to take their own actions to recover unpaid monies.
The commissioner said he has also written to the Department of Climate Change, Energy, the Environment and Water to encourage a review of program design.
The NSW Fair Trading and the Australian Competition and Consumer Commission have also been contacted by Lamont to consider potential systematic breaches of the Australian Consumer Law.
Lamont said businesses should take extra caution and consider their options carefully when looking for avenues to recover unpaid compensation.
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