The major clean energy announcement in the budget was a new $1.35 billion Solar Flagships program that will drive the construction of up to four large scale solar power stations.

Solar companies are preparing to bid for the construction of the plants.

Clean Energy Council (CEC) CEO Matthew Warren said “Australia is blessed with world class roaring 40s wind and is the sunniest continent on earth – we should be making the most of these clean energy assets.”

The CEC welcomed the creation of the new agency, Renewables Australia, to steward the development of emerging technologies.

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“If effective this new agency can help fill a gap in the development of new technologies and help grow great ideas and small companies into big solutions,” Mr Warren said.

The CEC also welcomed certainty for the growing Australian PV industry, with sustained support for the $8,000 solar rebate until it is replaced with a Solar Credits scheme under the renewable energy targets expected later this year.

Mr Warren said the endorsement of clean energy by the government, like solar and energy efficiency, is the next big step towards developing the new green jobs market and reducing national greenhouse emissions.

“The initiatives outlined will not only accelerate our ability to deliver affordable clean energy at large scale, but will help deliver new jobs – particularly in regional Australia – and stimulate investment in this important emerging industry,” Mr Warren said.

The CEC said that the budget commitment to developing Australia’s first smart grid network will allow householders to go beyond the traditional energy saving methods such as retrofitting lighting.

“The smart grid initiative puts the power in everyone’s hands – reducing demand and lowering greenhouse emissions,” Mr Warren said.

The Australian Conservation Foundation (ACF) has also commended the Federal Government for strong funding for solar and public transport and urged it to reinstate funding for environmental research.

However, green groups such as the ACF and Greenpeace have strongly criticised the proposed funding of $2 billion for carbon capture and storage projects under the Carbon Capture and Storage Flagships program.

ACF Executive Director Don Henry said “The $2 billion of new funds over nine years for carbon capture and storage research is public money not well spent. The companies that make huge profits from mining and burning coal should fund the research into technologies that may – or may not – help reduce Australia’s carbon emissions in ten, fifteen or twenty years.”