Solar Credits Scheme
The solar credits scheme offers purchasers of solar panels the opportunity to recoup some of their outlay through renewable energy certificates (Recs). These are usually offered as a point of sale discount by solar panel retailers. Here is our interpretation of what’s available now:
Solar Credits Scheme for Photo Voltaic Panels:
The new scheme is based on Renewable Energy Certificates (RECs). Each REC is equivalent to one MWh of generated electricity from an accredited renewable source. RECs are normally calculated over 15 years, with the Solar Credits Programme providing a bonus of five times the amount of RECS normally given, up to a system capacity of 1.5kW. Once RECs are created they can be sold for the current market price.
Example:
A 1.5kW system on the Surf Coast is equivalent to 26.6 RECs over 15 years.
Calculated at a REC value of $50
5 x 26.6 = 133 RECs = $6,650
Positives:
• Open to householders, businesses, holiday homes and community buildings.
• Non means tested.
• Open to other forms of small renewable energy systems such as wind.
• RECs are generally created by the company installing your system and given as an upfront discount at the point of sale.
Negatives:
• Number of RECs are determined according to location.
• Attributing 5 times as many RECs as a system actually generates creates ‘phantom’ RECS which will ultimately water down Australia’s Renewable Energy Target.
• Although individual electricity bills will be reduced, if a purchaser of a system sells their RECs, they are effectively selling the energy reduction achieved to another source such as an electricity retailer. The electricity retailer is then able to claim this reduction as a part of their renewable energy target. In other words without providing any further increase in renewable capacity.
• To avoid the above anomaly, purchasers of solar systems do have the option of keeping their RECs.
News as of February 2011
Solar Credits - RECs Multiplier to be phased out early
Under the Solar Credits incentive, systems installed after June 30th 2011 will receive 4x multiplier (reduced from 5x) on the number of Renewable Energy Certificates (RECs) they receive, for the first 1.5kW of panels installed. This will result in around a $1200 drop in the incentive given from government. The change was announced in December by The Minister for Climate Change and Energy Efficiency, Greg Combet and bought forward the phase out of Solar Credits by 12 months. The Government will continue to reduce the multiplier out until 2014 with the multiplier dropping by 1 each year.
For more info please see solar credits faq or solar credits amendments