Federal Government - Australia Wide
Solar Credits?
The Solar Credits program is part of the expanded RET (renewable energy target) scheme. Solar Credits are available to households and businesses that install small-scale solar PV, wind and hydro electricity systems.
The credits scheme works by multiplying the number of tradeable RECs able to be created for eligible installations. If the system is installed between 9 June 2009 and 30 June 2012, the homeowner will receive five times as many RECs as under the deeming arrangements for the existing Renewable Energy Target scheme. From 1 July 2012, the multiplier will reduce by a factor of 1 each year until it ceases on 30 June 2015.
Solar Credits will apply to new installations of small-scale renewable energy generators eligible under the scheme. Solar credits will apply to the first 1.5 kilowatts (kW) of capacity installed. Generation from capacity above 1.5 kW will still be eligible for the standard 1:1 rate of RECs creation. The credits will only apply to the first small-scale generation system installed at an address.
| Scheme Type | Solar Credits scheme under expanded RET | |
| Eligible renewable technology/item | Photovoltaic systems, minimum 450-watt peak (ppW) output | |
| Applicable sector | Households, small and medium businesses and community use buildings | |
| Rebate Amount |
5 x Eligible RECs up to 1.5kw | |
| Contact information | Federal | Department of Climate Change: http://www.climatechange.gov.au/renewabletarget/index.html And the Office of the Renewable Energy Regulator, www.orer.gov.au |
Renewable Energy Certificates (RECs)
Renewable Energy Certificates (RECs) are generated under the federal government’s Mandatory Renewable Energy Target (MRET) scheme, and are not rebates.
Certificates are issued by the government for the generation of renewable energy, which electricity retailers and other ‘liable parties’ (such as large users of electricity) are then obliged to purchase in order to fulfil their REC liability. This obligation represents the contribution of business to their greenhouse emission reductions under the federal government’s Mandatory Renewable Energy (Electricity) Act 2000.
An important consideration for anyone claiming RECs is that by doing so you may actually be reducing some of the benefits of installing the renewable generation capacity in the first place. By not claiming RECs for your system, liable parties will be obliged to source their RECs elsewhere, therefore stimulating demand for additional renewable energy installation. For more information download the ReNew magazine article
| Scheme type | Solar Credits and Renewable Energy Certificates |
| Eligible renewable technology | Small renewable generation units, including:
|
| Applicable sector | Households and Small to Medium Business |
| Rebate amount | Renewable energy systems generate RECs based on the size, location and type of the system (solar, hydro or wind). For example, a typical (1kW) solar PV system will generate between 1 and 1½ RECs annually, depending on its location. The buy-back price for RECs varies over time, depending on supply and demand. |
| Additional information | You may either register with Office of the Renewable Energy Regulator (ORER) to create RECs yourself, or assign the rights of the RECs generated by your system to an agent (possibly the installer of your system). If you choose to generate your own you would then sell the RECs (at a negotiated price) through an electricity retailer, RECs agent or trader. Calculating the RECs generated for a system is relatively straight-forward; explanations and fact sheets are downloadable from: Solar: www.orer.gov.au/publications/photovoltaic.html Wind: www.orer.gov.au/publications/wind.html Hydro: www.orer.gov.au/publications/hydro.html |
| Contact information | For further details, please visit the Office of the Renewable Energy Regulator: www.orer.gov.au/sgu/index.html |