Solar credits scheme
Solar credits are a way to multiply the number of RECs offered for the generation of electricity through solar. This scheme replaces the Solar Homes and Communities Plan rebate scheme for solar electricity systems which ended June 9 2009. Unlike the previous rebate arrangement the solar credit scheme is not be means tested, and is available to businesses as well as households and community groups.
The multiplier
Installers of Small Generation Units (SGUs) can receive up to five times as many RECs as the SGU would normally be eligible for. The multiplier depends upon when the unit is installed:
Under the new arrangements, a reduced multiplier of four will apply to systems installed from 1 July 2011 to 30 June 2012. The multiplier will then phase down by one each year as per the original intention of the mechanism, as the cost of installing solar systems is expected to decline further over the years.
| Period |
Multiplier |
| 1 July 2009 to 30 June 2010 |
5 |
| 1 July 2010 to 30 June 2011 |
5 |
| 1 July 2011 to 30 June 2012 |
4 |
| 1 July 2012 to 30 June 2013 |
3 |
| 1 July 2013 to 30 June 2014 |
2 |
| 1 July 2014 to 30 June 2015 |
1 |
Multiplier for certificates for small generation units (for the first 15kW - the usual number of RECs will apply to installed capacity of more than 1.5 kW.)
As an example 1 kW solar electricity system under the Solar Credit Scheme would on average produce:
- 20 RECs x 5 x $37.90 = $3,790 total credit (Sydney, Brisbane, Adelaide, Perth, Canberra, Townsville, Cairns)
- 17 RECs x 5 x $37.90 = $3,221.50 total credit (Melbourne, Hobart)
Larger solar electricity systems create more RECs and therefore further credits would be available.
For example, a 1.5 kW system in Sydney would create 31 RECs x 5 x $37.50 = $5,874.50 in total credits.
Changes to REC's
From 1 January 2011 the Renewable Energy Target, which guarantees 20 per cent of Australia’s energy in 2020 will come from renewable sources, includes the Small-scale Renewable Energy Scheme (SRES). The SRES covers small-scale technologies such as solar panels. It provides a fixed price of $40 per REC, providing direct support for households that take action to reduce emissions.
For more information please see the Government website from the office of the Renewable Energy Regulator:
http://www.orer.gov.au/lret-sres-updates/index.html
More information
If you have any questions on the scheme or how solar creditcs relate to RECs, please call us on 1300 170 668, or fill out the enquiries form on our contact page.
We also offer a range of ground mounted and roof mounted solar installations in our shop area.
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