The South Australian Government has introduced a new incentive for investment in large scale renewable energy projects in the state, announcing tax rebates for companies investing in wind farms and solar projects above 30 MW in scale. A payroll tax rebate of $1 million for wind farms, and up to $5 million for solar projects, will be given for labour costs related to direct on-site construction starting after July 1 2010. The tax exemptions will be available for four years, driving investment in utility-scale renewables toward South Australia's goal to generate 20% of its electricity from renewable sources by 2014.

Premier Mike Rann announced the plan yesterday from Copenhagen, where he is chairing a states and regions committee on climate change as part of the ongoing UN summit.