Stronger protections needed for small businesses participating in renewable energy schemes
Recent failures highlight the need to review gaps and ensure small businesses are not left out of pocket.
26 August, 2024
In recent months, the NSW Small Business Commission has been contacted by small solar installers that have not been paid for work completed as part of the Small-scale Renewable Energy Scheme (SRES). 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 NSW Small Business Commissioner raised these concerns with the Clean Energy Regulator (CER) to highlight the experiences of impacted small businesses.
The Commissioner noted that in some cases, solar installers have completed multiple installation jobs but have not received payment for their work, impacting their cash flow and leaving them uncertain over whether they will be paid.
“While the scheme is designed to encourage investment in small-scale renewable energy, it has inadvertently resulted in small businesses being out of pocket”, said Small Business Commissioner Chris Lamont. “Solar installers acting in good faith as part of this government program rightfully expect to be paid for their work”, added Lamont.
Some installers completed work for Emerging Energy Solutions Group Pty Ltd, which is now in liquidation. While installers need to take their own actions to recover unpaid monies, the Commissioner has urged the CER to provide practical, up-to-date information for impacted businesses as well as to explore improvements to avoid similar issues arising in the future.
The Commission has also written to the Department of Climate Change, Energy, the Environment and Water, encouraging a review of program design, and to NSW Fair Trading and the Australian Competition and Consumer Commission to consider potential systemic breaches of the Australian Consumer Law.
Businesses should consider their options carefully as there may be limitations on the avenues available for recovering unpaid amounts. Businesses can contact the liquidators if they believe they are owed money by Emerging Energy Solutions Group Pty Ltd.