The federal government has released a long-awaited rooftop solar sector review, saying consumers will be the winners with new rules to stamp out dodgy operators.

The review makes 13 recommendations, which the government says will reduce the number of low-quality installations and unscrupulous operators.

A key change is that the accreditation of installers will now be overseen by the Clean Energy Regulator (CER), which conducted the review. 

The CER will be given new powers to remove the accreditation of installers if they do not meet quality and service standards. 

This will mean a significant shift in the role of the Clean Energy Council (CEC), an industry body which already offers accreditation courses that set minimum standards for installers and retailers. 

"We think the Clean Energy Council has done its role diligently," the CER's Mark Williamson said.

"The thing is, if you asked an industry body to do things a regulator should do and if it doesn't have the intrusive powers to do it, then it makes it really difficult. 

"The report does say there's a potential perceived conflict of interest because it'll always be hard for an industry body to potentially exit both installers and the component manufacturers who may very well be their members."

The government has accepted all 13 recommendations and has allocated $19.2 million to implement the reforms.

"The solar PV [photovoltaics] industry delivers consumer and economic benefits, and most participants are following the rules," Energy and Emissions Reduction Minister Angus Taylor said.

"These reforms will ensure that those solar retailers, installers and manufacturers who are found to be doing the wrong thing are held to account."

CEC chief executive Kane Thornton welcomed the changes, which he said would "ensure industry integrity and proper oversight".

"A more active approach to regulation and compliance from the Commonwealth Government is a good step forward and the industry looks forward to working closely with the CER to refine the regulatory framework for the sector," he said.

"The solar industry has already begun acting on a number of these recommendations, including the requirement for installers to be on-site during installations, increased training and awareness about the expectations on installers.

"The Clean Energy Council is committed to continually raising the bar, improving standards and driving the few dodgy players out of the industry."

Biometrics 'selfies' for installers

The review looked at installers and retailers who were claiming government financial incentives, and pointed to "integrity issues" within the system.

It found some installers who were accredited by the CEC had not been on site when solar systems were installed, but still signed off on them.

The review also found some installations were completed without the relevant electrical licence required under state and territory laws.

In order to tackle the issue, the review said biometrics could be used to make sure an accredited installer remained on site.

Mr Williamson said most installers already used an app which gave the location of the job, and that biometrics data could become an additional feature of the app. 

"We think for the installer to take a selfie three times during the installation, start, middle and end on the site," he said.

"The app already locks in the geo coordinates of the installation when it scans the barcodes to the panels."

He said it was important that an installer who was properly trained was on site for safety and quality.

"We think it's appropriate, especially given the Commonwealth incentives is so material — about a third of the system costs — we don't think it is over the top to have biometrics required and we don't expect there will be push back," Mr Williamson said.

New online tool for consumers

The money the government has allocated to implement the review's recommendations will also fund a new online tool and information resources for consumers.

"We will also empower consumers by providing them with the information they need to make informed choices about rooftop solar PV," Mr Taylor said.

The review said buy now, pay later finance arrangements should continue to be monitored by regulators. 

The review was announced in August 2020 amid reports of a range of serious issues, including defective installations and the misuse of installer accreditation.

The ACCC had also highlighted a high level of complaints about the sector.

In August the ABC revealed widespread concerns about the quality of installations, as well as calls for improved dispute resolution mechanisms to help consumers when they have problems with their system.

But the review does not recommend any changes to the way disputes are resolved for consumers.

However, it does recommend that under new requirements, solar retailers will need to make a short statement that guarantees a system will "perform to the quote provided" to the consumer and will be "complete, connected and generating". 

The CER said under the changes, a company found to be making false statements could lose its accreditation or the right to access government rebates.

The CER said the changes would also prevent phoenixing, where a company goes out of business and sets up another company under a different name.

Consumer Action Law Centre chief executive Gerard Brody said he broadly welcomed the changes.

"We would've liked to have seen the review to be stronger on dealing with the risks of BNPL [buy now pay later]  — the report says this should be 'monitored'," Mr Broady said.

"The review didn't address the concerns we've raised with unsolicited sales and access to effective dispute resolution via ombudsman."

Court action to come 

During 2019-20, a CER review found just 6 per cent of the country's 7,500 installers signed off on 37 per cent of rooftop solar installations under the government's Small-scale Renewable Energy Scheme (SRES).

The regulator has referred 51 installers to the CEC, which has cancelled the accreditation of 32 installers.

A further 19 are under review, while two others have Enforceable Undertakings to fix their work.  

The CER told the ABC there were criminal and civil cases afoot against installers who had done the wrong thing. 

"Some we're pursuing through civil proceedings, others that we've referred to the Commonwealth Department of Public Prosecution for potential criminal charges," Mr Williamson said. 

"These things take a long time to go through the court system, and that's why the new powers for us to require that written statement from retailers and to exit the ones who do the wrong thing, and these other things are the positive things to force the bottom dwellers to get out or clean up their act."