After much debate on Sunday July 10th Prime Minister Gillard finally revealed the long awaited details of the carbon tax, which will be implemented from July next year. As expected the tax will have a starting price of $23 per ton, rising by 2.5 -4% each year during a three-year fixed price period until 1 July 2015, when the mechanism will transition to an emissions trading scheme with a price determined by the market.

There were some positive surprises though, with the announcement of the  Governments new Clean Energy Future Plan, which has it’s own dedicated website http://www.cleanenergyfuture.gov.au/  . The plan is based on funds from carbon pricing making it possible to set up a strong renewable energy framework and encourage more clean energy investments in the future, so enabling Australia to make a smooth transition away from reliance on fossil fuel sources of power.

In response to the Clean Energy Council’s recommendation of supportive measures, the government will establish two statutory bodies to manage its clean energy affairs-

1)The Clean Energy Finance Corporation (CEFC), which will have an initial seed of $10 billion to boost the private sector of renewable energy by loaning funds to approved solar power projects and then using the revenues for re-investments. A portion of the initial $10 billion will also be used for the further development of solar power in Australia, plus other environmental measures which include energy efficiency and manufacturing research.

2) The other statutory body is the Australian Renewable Energy Agency (ARENA). Their function will be to manage the existing government programs and funding for renewable energy. In addition, the ARENA will also be involved with the research and development of clean energy in the country, by proper allocation of budget and financial assistance. The ARENA will have an initial seed of $3.2 billion and will also receive additional funds from the revenues of the CEFC and the carbon tax.

While there is still some understandable concern amongst the general public and businesses about how the introduction of the tax will affect them, especially the 500 companies who will bear the brunt of the tax, the overriding opinion is that carbon tax package will at least support the country’s necessary transition to larger scale renewable energy production and the further development of the clean energy sector.

Australian Solar Energy Society Chief Executive John Grimes said “While the details [of the plan] are still being worked out, it is likely big solar companies will be able to access loan guarantees and equity investments from the CEFC…….Big solar is a big winner in the Clean Energy Future Plan.”