PUBLIC HOUSING, SOLAR ENERGY

The Hon. M. PARNELL (15:03): I seek leave to make a brief explanation before asking the Minister for Communities and Social Inclusion questions about solar energy for people on low incomes.

Leave granted.

The Hon. M. PARNELL: Solar PV is a great strategy to reduce household energy bills. However, there is some concern that people on low incomes are locked out of this option through the high capital cost of installation or because they rent rather than own the property where they reside. As a major landlord through Housing SA, the SA government is uniquely placed to directly assist Housing SA residents to obtain benefits from solar energy by installing panels on Housing SA properties. This has been recognised previously by this government. For example, former minister Michael O'Brien said last year:

...we ought to be looking very seriously at assisting low income earners get this technology on their roofs....public housing is the obvious starting point...

Another option is support for community solar buying, where renters are able to pool funds to invest in a larger solar installation away from their place of residence and use the return from the sale of the electricity to offset their electricity bills. I understand that one such community solar option for South Australia was being actively considered by Renewables SA when that group's funding was cruelly scrapped by the Weatherill government.

But I came across another option recently in documents I received under the Freedom of Information Act. In those documents, well respected solar advocate Adjunct Professor Monica Oliphant proposed a clever scheme whereby the SA government agreed to pay up-front a number of years' worth of energy concession payments, and this up-front payment could be used to install solar power on the concession recipient's house or Housing SA property.

According to Professor Oliphant, this scheme would save the government money whilst also providing a greater financial return to the householder. It is a wonderful example of a win-win. In these FOI documents it appears that the minister is well aware of this proposal; however, in my conversations with Professor Oliphant she was unaware of whether any of her discussions with people in the minister's department back in February had led anywhere. So my questions are:

1. Does the minister support the proposal put forward by Professor Oliphant? If not, why not? If he does support it, what is he doing to progress it?

2. What other plans or strategies are in place for the government to install solar PV on public housing?

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers) (15:05): I thank the honourable member for his important questions and for his ongoing interest in this area. There has been some ongoing interest in the media and public debate in the recent past about the benefits of placing solar panels on Housing SA's properties. Whilst the benefits to the tenants would be obvious, particularly in the face of rising electricity costs and the general cost of living pressures on moderate to low-income households, the cost to actually install solar cells on about 45,000 properties would be extremely cost prohibitive, especially in the current economic environment.

Housing SA is supportive of the installation of solar systems on its properties; however, the current capital outlay can be significant, depending on the size of the system installed. There is also the consideration of long-term recurrent maintenance and replacement costs of the systems and their component parts. For example, a trial of about 200 homes would require capital expenditure in excess of $400,000 I am advised, in addition to the ongoing maintenance and replacement costs—I repeat: in addition to the ongoing maintenance and replacement costs.

Suggestions about using advance funding from the energy concessions have been made, so that eligible individuals and families could use this to pay for the installation of solar systems. This is problematic on a number of heads of argument. We have to understand that Housing SA has a fairly transient rental tenant cohort. This may present problems for tenants wanting to transfer to other housing; for example, to downsize or to move into new accommodation.

If tenants purchase systems and put them on Housing SA property they then have ownership of the system. The current deed of agreement that exists when Housing SA tenants elect to put solar panels on the roof gives the tenant three options should they terminate their tenancy or transfer to other accommodation: first, to remove the system and make good any repairs to the roof to bring it back to its original condition; secondly, to leave the system on the roof and allow it to pass to Housing SA's ownership and be used by the next tenant; or, third, to have Housing SA remove the system and pass any costs associated with the removal or repairs required to the vacating tenant.

In the proposal where the tenant might use forward funding from their energy concessions entitlement, they would not be eligible to claim this concession for what could be quite an extended period, and that is a great difficulty for some tenants who are on fixed and low incomes. There are also the potential equity issues with those people who have already paid to install their own solar panels. I am advised that in 2011-12 Housing SA approved 143 installations of solar panels at the expense of the sitting tenant, and it is expected that these will increase as the price of photovoltaic cells continues to drop in the market. These tenants sign a deed of agreement outlining their obligations and responsibilities should they vacate the house. Tenants who have installed solar panels under the deed are responsible now for maintaining the systems themselves; Housing SA does not provide these services.

As I mentioned, solar panels are increasingly becoming more affordable for tenants to purchase through major energy retailers. Some retailers have offered rent-to-buy type plans, and even payment plans to purchase systems over several years, which are part of monthly or quarterly billing cycles. Given the need to reduce energy bills for those on low and fixed incomes, the government has announced $1 million in the 2012-13 budget for a utility literacy program. The program is currently being consulted on with NGOs and support services with the aim of better educating tenants about how to use electricity, gas and water more wisely and more efficiently.

Cost-effective energy and water efficiency measures implemented in Housing SA stock include supporting renewable energy through the installation of solar hot water systems as well as gas and heat pump hot water systems, low flow showerheads and dual flush systems. All new houses constructed for Housing SA achieve a six-star energy rating through the installation of wall and ceiling insulation and the inclusion of passive design energy efficiency principles to achieve good levels of thermal comfort.

In March 2012 Housing SA implemented the energy rating assessments project to assess the energy rating of a representative sample of the existing stock and identify possible cost-effective energy efficiency improvements. The results of these assessments will inform Housing SA about the performance of its housing stock and will identify areas of potential cost-effective energy efficiency measures.