The government had committed almost $1.5 billion to the Program which would build four large-scale grid-connected solar energy installations powered by solar thermal and photovoltaic (PV) technology.

The federal government’s Solar Flagships program, which was to have faced the axe to help pay for damage caused by the Queensland floods, is now back on the national agenda after the Australian Greens agreed to support the Prime Minister’s flood levy.
  
The government had committed almost $1.5 billion to the Program which would build four large-scale grid-connected solar energy installations powered by solar thermal and photovoltaic (PV) technology. The program was part of the $5 billion Clean Energy Initiative (CEI).
  
In the aftermath of the devastating floods around the nation last month, Prime Minister Julia Gillard announced  that cuts, caps and deferments would be made to renewable energy measures throughout the budget, including Solar Flagships, the Renewable Energy Bonus Scheme and the Solar Hot Water Rebate.
  
The Greens are say they have ensured $100 million will flow into Solar Flagships within the forwards estimates period (before 2015) with the remainder of the funding to follow. A round table discussion between the government and Greens will convene to discuss how best to utilise solar energy funding into the future, including the role of feed-in tariffs as a necessary mechanism in the uptake of solar energy in Australia.
 
In a statement the Party says that, by negotiating with the Greens, the government has acknowledged the role of feed-in tariffs and given the Australian solar thermal and PV industries a real chance to flourish and start replacing our old dirty coal fired power plants.
 
"It’s a win-win," said Greens spokeswoman Christine Milne. "The Greens not only getting some of the money back, but actually proactively getting the

[Solar Flagships] scheme redesigned so it can do what it was designed to do: generate energy and create jobs."

The Government has committed $1.5 billion to support the construction of up to four large scale, grid-connected solar power stations in Australia, using solar thermal and photovoltaic technologies. 

The Solar Flagships program is part of the Australian Government’s $5 billion Clean Energy Initiative and will support the demonstration of large scale solar technologies in a commercial context.
 
The primary objective of the Solar Flagships program is to provide the foundation for large scale, grid-connected, solar power to play a significant role in Australia’s electricity supply and to operate within a competitive electricity market. The Government’s aim is to establish up to 1,000 megawatts of solar power generation capacity.
 
On 18 February 2011 the Prime Minister announced support from cross-bench members of the House of Representatives for the Government’s flood levy package.
 
This package will ensure that essential funds go towards rebuilding flood affected communities around Australia, especially in Queensland.
 
As a result, the Government has agreed to return the previously announced saving of $60 million to the Solar Flagships program over the period to 30 June 2015. [http://www.pm.gov.au/press-office/further-support-flood-levy-package-welcomed]
 
The Government has also agreed to re-phase $40 million into the period to 30 June 2015 that was previously allocated to the period beyond 30 June 2015.
 
The net budget impact of this change is $100 million. The Government will offset this in the upcoming Federal Budget in May.
 
This means total funding to the Solar Flagships program now stands at $1.5 billion.
 
The timing of actual expenditure for the program will be determined by project requirements following the outcome of the merit based competitive selection process.

www.ret.gov.au/energy/Documents/Solar%20Flagships%20factsheet%20-%20Oct%202009.pdf

www.ret.gov.au/energy/energy%20programs/cei/sfp/Pages/sfp.aspx