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SOLAR CREDITS SCHEME (SOLAR PV REBATE) FACTS

The Australian Government is supporting the deployment of renewable energy in Australia's electricity supply through the Renewable Energy Target (RET) scheme. The RET scheme guarantees a market for additional renewable energy generation using a mechanism of tradeable Renewable Energy Certificates known as RECs.

The Australian Government has set a target to achieve a 20 per cent share of renewable energy in Australia's electricity mix by 2020. The expanded RET scheme will absorb state and territory renewable energy targets into a single national scheme, and is to be implemented through amendments to the legislation that underpins the existing scheme. 

Systems installed on or after 9 June 2009, where no application has been made up to that date for pre-approval under the Solar Homes and Communities Plan, will now receive Solar Credits under the RET scheme rather than the previous photovoltaic rebate scheme.



SOLAR CREDITS SCHEME - FREQUENTLY ASKED QUESTIONS


I’m planning on getting a solar PV system installed on my home. How do I get Solar Credits?

•  Solar Credits replace the solar PV rebate previously provided under the Solar Homes and Communities Plan (SHCP).

•  Systems installed on or after 9 June 2009, where no application has been made for pre-approval under the SHCP, will be entitled to Solar Credits under the Solar Credits scheme rather than the rebate.

•  In practice, installers of solar photovoltaic (PV) systems would usually offer a discount on the price of installing a solar PV system in return for the Solar Credits.



How much benefit can I expect to get from Solar Credits for installing a solar PV system?

•  Solar Credits will be provided in the form of Renewable Energy Certificates (RECs) for new solar PV systems installed from 9 June 2009. The Solar Credits (5 x Eligible RECs) will apply to the first 1.5 kilowatts (kW) of capacity of the system installed. The balance of the system receives 1 x Eligible RECs.

•  The level of support provided by the Solar Credits scheme will depend on the market value of RECs (which may vary over time) and the location and size of the system.

•  The value of the RECs that are claimable for a given renewable energy system will be based on the market value of RECs at the time the renewable energy system is completed.

•  For example, based on a $30 REC price in late 2009, a solar PV system in Newcastle, Sydney, Perth, Adelaide, Brisbane or Canberra will receive:

   1.0 kW Solar PV System:    $3,090    (103 RECs)
   1.5 kW Solar PV System:    $4,650    (155 RECs)
   2.0 kW Solar PV System:    $4,950    (165 RECs)
   2.5 kW Solar PV System:    $5,250    (175 RECs)
   3.0 kW Solar PV System:    $5,550    (185 RECs)



Why do Solar Credits vary across the country?

•  The number of Solar Credits created for a system will depend on the amount of renewable energy the system generates.

•  A solar PV system in Newcastle, Sydney, Perth, Adelaide, Brisbane and Canberra will create the same number of RECs and receive the same amount of support.

•  The same sized system installed in Melbourne or Hobart will receive fewer RECs as these areas have less sunshine so less renewable energy is produced.



                                           REC Zones in Australia


What if I want to apply for Solar Credits myself?

•  Generally when installing solar PV systems, owners transfer the right to create RECs to their solar panel installer in return for a discount on the price of the system being installed.

•  Owners of solar PV systems installed from 9 June 2009 can access Solar Credits themselves, rather than transferring their Solar Credits to their installer. Owners can do this (generally through an agent) by applying to the Office of the Renewable Energy Regulator (ORER) any time within 12 months following the date of installation.

•  Further information on accessing Solar Credits directly is available from ORER www.orer.gov.au

Will I be able to get both Solar Credits and the SHCP rebate?

•  No.  Appropriate safeguards will be put in place to prevent double dipping in relation to the multiplier and the SHCP rebate.

*** The following information is NOT CURRENT and is provided for reference purposes only ***

Solar Power Rebate Cashback Offers

The Australian Government, through the Department of Environment, Water, Heritage and the Arts, offers rebates for solar power systems through the Solar Homes and Communities Plan (SHCP) and Renewable Remote Power Generation Program (RRPGP).

The SHCP is essentially a rebate to encourage the installation of solar power on homes and community use buildings, whereas the RRPGP provides financial support to increase the use of renewable power generation in remote parts of Australia that presently rely on fossil fuel for electricity supply.

IMPORTANT UPDATE TUESDAY 9 JUNE 2009 : SHCP REBATE ENDS

Unprecedented growth under the Government's Solar Homes and Communities Plan (SHCP) has resulted in early closure of this program and the immediate introduction of the Solar Credits scheme.

The SHCP was scheduled to end on the 30th June 09 and the abrupt termination of this program has taken the industry and householders by surprise. Only applications sent by today (9th June 09) will be accepted for assessment.

See the Government's Solar Credits Facts Sheet for information on the new Solar Credits scheme.

Details of the new Solar Credits scheme application procedure will be posted here as they become available.

Solar Homes and Communities Plan (SHCP)

The Photovoltaic Rebate Program (PVRP) is now known as the Solar Homes and Communities Plan (SHCP). The SHCP solar rebate program is scheduled to end on the 30th June 2009 and will be replaced by the Solar Credits scheme.

The Solar Homes and Communities Plan is designed to ensure that rebates get to the households that need them most through the introduction of a means test, with households with an annual taxable income of less than $100,000 eligible for the rebates.

If you buy a new solar power system, you may be eligible for a rebate. The level of the rebate is calculated on the size of the system installed, on a dollars-per-watt basis, up to a maximum amount.

Renewable Remote Power Generation Program (RRPGP)

The Renewable Remote Power Generation Program (RRPGP) commenced on 23 July 2007 and provides rebates for households, communities, not-for-profit, business, government and other organisations, in those areas of Australia not close to a main grid, to support the installation of renewable generation systems.

Rebates of up to 50% of the capital cost of renewable generation and essential enabling equipment are available to applicants that fully comply with the eligibility requirements and procedures outlined in the program guidelines. The maximum rebate available is $200,000.

Summary of Government Solar (PV) Rebates

The following table outlines the current rebates the Australian Government offers in NSW for the Solar Homes and Communities Plan (SHCP) and the Renewable Remote Power Generation Program (RRPGP).

Eligibility

To be eligible for a rebate:

• Rebates and grants are available for the purchase and installation of major equipment items. Equipment must be new and not second-hand.

• Residential rebates are for photovoltaic systems that are connected to a main-grid or are very close to a main-grid.

• Any system eligible for a rebate under the Renewable Remote Power Generation Program (RRPGP) is ineligible for the Solar Homes and Communities Plan (SHCP). Applicants should discuss which rebate to apply for with an accredited designer and installer.

• The person who carries out the installation must be accredited for design and installation of photovoltaic systems.

Please contact us for more information on the cashback offers or refer to our Solar System Pricing page to see how the rebates can help bring the total system cost down.