2020 IB Extended Essays

generation, the total number of small-scale solar installations increased by approximately 25% from

2018 to 2019. This data shows that sale of solar systems has increased and therefore, the subsidy

has been having an impact. The primary data in figure 1.4 demonstrates that the subsidy is definitely

having an impact on sales. (Bloch, 2020)

Table 1.1 (Chakrabarti, 2019)

According to the Australian Energy Market Operator, by 2021, household solar will produce 85%

more than it produced in the 2017-2018 year. This is very positive and reinforces the idea that the

solar panel subsidy is working as planned and causing sales.

There is another incentive that was introduced by the state governments that is paid to energy

providers that pay the consumers of electricity known as the feed in tariff. This payment is paid to

people who have generated more electricity by using their Solar panels then they use. This excess

electricity is brought back into the electricity grid (LG Solar, n.d.). This would also act as an incentive

for people to get Solar panels, and therefore reduces the accuracy of the data being used above to

answer the question. While this has been used in the past to increase sales, it is being phased out

with new installations in the country not being granted access to it (Martin, 2016). While this

occurred in 2016, Figure 1.3 demonstrates that this did have an affect on Sales, it did not kill the

solar industry, as evidenced by the increase in sales after 2016.

8