The collapse of New South Wales-based solar and wind energy provider Rewind Energy has highlighted the continued pressure on green energy companies, even as the Government prepares to invest billions of dollars through its new clean energy funds.
The liquidation of Rewind Energy also comes after several other solar and clean energy firms, including DCM Green, First Growth Funds and Intelligent Solar, have collapsed, despite demand for solar energy reaching an all-time high.
According to filings with the Australian Securities and Investments Commission, a liquidator was appointed to Rewind Energy on July 13, with a resolution for winding up the company made on July 18. On July 20 a notice was filed for a creditors’ meeting to consider voluntarily winding up the company.
Liquidator Duncan Meadley of Meadley BRI was contacted by SmartCompany, but no reply was available prior to publication. The company’s website also appears to be offline, with a notice saying it has been suspended.
Sources within the solar energy industry say they expect more collapses over the coming months, even though demand for solar and clean energy remains high and the Federal Government is set to invest billions in new clean energy projects as part of its innovation funds through the carbon tax.
John Grimes, chief executive of the Australian Solar Energy Society, says while there are a number of smaller reasons behind the decline in activity, the primary reason is a lack of state government support – especially in New South Wales, where the solar feed-in tariff was ultimately scrapped.
“This means that today people who install solar panels who feed excess electricity into the grid aren’t being paid anything.”
“Solar policy has been a real rollercoaster ride for industry over the last couple of years. Governments have set solar support schemes, but the demand for those schemes has outweighed government expectations.”
Recently, NSW firm Carbon Management Solutions complained to SmartCompany that it can’t actually install any solar panels for customers because it doesn’t want them to miss out on any future government support.
“We know the New South Wales Government has said they will take part in a review on the solar industry in New South Wales, and we understand that will take eight to 10 months to complete. In the meantime though, the industry has stopped altogether.”
Grimes says while the industry will continue to see more bankruptcies and collapses, in the long-term it is a viable investment as demand for solar increases.
“The price of the technology has dropped 22% per annum and we’re expecting a greater drop than that. We’re rapidly approaching a point where using solar panels is cheaper over the next 20 years than buying that electricity from the grid.”
“Will solar prevail? Absolutely, but what the industry development policy is between here and there, that’s up to the Government.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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