Solar Credits Scheme
Solar Power Rebates
The federal governments Solar Credits Scheme is open to all Australian residents without the need for a previously required means test. This new incentive utilises the existing Renewable Energy Certificate system but includes a 5x multiplier to the number of REC's (or Solar Credits) for systems up to 1.5kW. If you were not previously eligible under the old $8,000 rebate scheme, you will now be eligible for incentives under this new scheme.
These Credits will assist with the upfront cost of installing roof top PV systems. Solar Credits will apply to new installations of household scale renewable energy generators eligible under the scheme. The number of additional credits will be based on the multiple as set out in the following table.
| Year | 2009-10 | 2010-11 | 2011-12 | 2012-13 | 2013-14 | 2014-15 | From 2015 |
|---|---|---|---|---|---|---|---|
| Multiplier | 5 | 5 | 5 | 4 | 3 | 2 | No multiplier (1) |
The scheme commenced on the 1st of July 2009 and will be phased out by 2015-16.
Solar power systems with a capacity above 1.5 kW will be eligible for the mulitplier 1:5 up to 1.5kW and then the standard 1:1 rate of RECs creation beyond that. The credits will only apply to the first solar power system installed at an address.
Under the solar credits scheme, home owners can receive certificates for the lifetime generation of the system either upfront or over longer time periods of one, five or fifteen years. This is called the deeming period.
Example
Under the existing MRET scheme, a 1.5 kilowatt solar PV system is eligible for Renewable Energy Certificates (RECs) valued at around $1500. Under Solar Credits, the household would receive five time that amount, or around $7500, depending on the market value of RECs.
- The price of Renewable Energy Certificates (RECs)
- The deeming period chosen by application (see above)
- The location of the solar PV system and the size of the system
What are Renewable Energy Certificates?
Renewable Energy Certificates (or RECs) are an electronic form of currency initiated by the Renewable Energy (Electricity) Act 2000. They may be created on the internet based registry system (known as the REC Registry) by eligible parties for each megawatt-hour of eligible renewable electricity generated or deemed to have generated. They are created by registered persons and are validated by the Office of the Renewable Energy Regulator. They are traded between registered persons and are eventually surrendered to demonstrate liability compliance against the requirements of the Australian Government's mandatory renewable energy target
To find out how much you would be eligible for just contact your local Power Partner on 1 300 SOLAR 1
