Solar panel gobbledegook !

Few would disagree that having solar panels on the roof is a good idea. Solar panels can use the sun to give hot water without the need to tap fossil fuel burning electricity generators - and can actually produce electricity without giving off harmful carbon emissions.

The government heavily subsidizes the installation of solar panels - but all that is about to change from July 09.

This subsidy is means tested - and the division point is for those earning more and those earning less than $ 100,000 a year.

Amazingly those earning less than $ 100,000 will have their subsidy cut by $ 3,600 and those earning more than $ 100,000 will have their subsidy increased - and there will be a marked disparity between the subsidy offered to those living in the southern states - compared with the rest of Australia.

For residents of Sydney, Brisbane, Adelaide and Perth those earning under $ 100,000 will see their subsidy drop for $ 9275 to $ 6374, while those earning over $ 100,000 will see theirs increase from $ 1275 to $ 6374.

In Victoria and Tasmania the under $ 100,000 lot will go from $ 9093 to $ 5660 and the over $ 100,000 from $ 1093 to $ 5466.

It seems that the Federal government is alarmed at the popularity of this scheme - and has taken steps to slow the drain on it's funds.

It seems like a " smoke and mirrors " operation based on simple mathematics.

The number of people earning more than $ 100,000 is a whole lot lower than the vast majority - who earn considerably less than that sum. By reducing the subsidy to the larger group it becomes less attractive - and therefore the applications fall and the government shells out less money.

Perhaps it has something to do with the perception that the humble working folk are " the great unwashed " and therefore free hot water is wasted on them. It would be an interesting survey to establish if the rich shower more than the poor - and no doubt some statistician on the government payroll will one day undertake such a task.

Whatever the reason - from July solar panels will move further from the reach of the average wage earner - which seems a strange decision from a government that professes socialist credentials !