Australia cuts rooftop solar costs for businesses

Australia will accelerate its transition to renewable energy by cutting the cost to install rooftop solar panels on factories, warehouses, farms and other businesses by around one-fifth, the government said on Wednesday.

The policy expands existing subsidies for rooftop solar and batteries in homes that have driven a surge in installations, boosting renewable power supply and reducing Australia's reliance on coal-fired plants.

Around one-third of Australian houses now host solar arrays — the highest proportion in the world — and together they produce around 10% of the country's power, according to the government.

Climate Change and Energy Minister Chris Bowen said the government would now subsidise systems up to 10 times bigger than the previous maximum.

"We are expanding the solar discount to include installations up to 1 MW in size," Bowen said in an address to the National Press Club in Canberra.

"This will slash the installation costs for commercial, industrial and agricultural buildings by around 20%. That's a significant saving on an investment which will immediately begin lowering the cost of energy."

Bowen also said he was asking the Australian Energy Market Commission to speed up approvals.

-Reporting by Peter Hobson; Editing by Tom Hogue/Reuters