Current at: 14 June 2011
Solar Credits: supporting small scale renewable generation systems (Nat)
In 2009 the Australian Government removed the popular $8000 rebate that had been available for people installing solar photovoltaic (PV) systems of 1 kilowatt (kW) or more.
They have replaced the rebate with Solar Credits, a mechanism under the mandatory Renewable Energy Target (RET) scheme for those that install small-scale renewable energy generators. Solar Credits are provided through bonus renewable energy certificates (RECs) in addition to RECs that the systems are eligible for under the existing RET.
Under the RET scheme, RECs are available for solar PV systems up to 100kW capacity, small wind turbine of up to 10kW or micro-hydro systems of up to 6.4kW capacity. The bonus RECs will be available to the first 1.5kW of capacity installed for systems connected to a mains electricity grid and up to the fist 20kW for off-grid systems. The Solar Credits multiplier will be applied on a sliding scale until 1 July 2013.
| Year |
9 June 09 -
30 June 11 |
1 July 11 –
30 June 12 |
1 July 12 –
30 June 13 |
From July 2013 onwards |
| Multiplier |
5 |
3 |
2 |
no multiplier |
RECs are an electronic form of currency similar to a share. Each REC equates to 1 megawatt hour of renewable energy. They are available for owners of accredited renewable energy power stations, eligible solar water heater installations or small generation unit installations including those described.
Like shares, the value of RECs rises and falls as a result of supply and demand. Between 2007 and 2009 the wholesale market value has fluctuated between $30 and $50 per REC.
The most common method in which a system owner is likely to receive the value of the RECs is through a discount on the price of the PV, wind turbine or micro-hydro system or through a cash payment from the installer or manufacturer after installation. In doing so the owner transfers the RECs to the company receiving payment. Alternatively system owners can create the RECs themselves and either trade them through a registered agent or voluntarily surrender, whether for financial gain or not.
For PV systems the financial benefit Solar Credits will provide will depend on the value of RECs, the size and the location of the system. Locations which receive more sunshine and therefore produce more renewable energy receive a greater quantity of RECs.
Unlike the previous scheme, Solar Credits are not means tested meaning that the household income will not affect the ability of individuals to receive assistance. However, no more than one system is entitled to receive Solar Credits at an eligible address.
Those considering installing a small scale renewable generation system are encouraged to compare systems, prices and how many RECs are provided as there are increasingly new products, manufacturers and suppliers entering the market.
For additional information on eligibility and processes for accessing Solar Credits phone 1800 057 590 or visit www.climatechange.gov.au
For further information HIA members can contact HIA’s Building & Planning Services staff on 1300 650 620 or hia_technical@hia.com.au.
If you would like to become a HIA member, contact 1300 650 620 or enquiry@hia.com.au