Solar flare up
A decision by the Australian Government may have a negative impact on the renewable energy industry. Deciding to means test the rebate available for solar installations is predicted to squeeze price sensitive buyers out of the market. It seems like a reasonable idea that higher income customers could afford to pay full prices. However, consider that up to 80% of the market for solar units earns more than the threshold upon which the means test is based, and it becomes an issue of price sensitivity probabilities in the largest chunk of the solar market. Just how this decision will actually play out is not entirely clear, although the initial indicators are of plenty of order cancellations at a time when the world's environment needs all the help it can get from the alternative energy sector.