Archive for June, 2009

Two weeks after withdrawing the rebate on grid-connected domestic solar power systems, the Federal Government today (23 June) announced it would do the same for off-grid systems.

The Renewable Remote Power Generation Program ends today in all states except Western Australia. The program effectively funded up to half the costs of solar panels, wind turbines or batteries for people in remote areas.

Today’s announcement from the NSW government was more positive: a net feed-in tariff of 60 cents a kilowatt hour. This means that anyone with a solar power system can sell the excess energy they generate back into the grid for around four times the price of buying it from the grid.

The tariff applies to systems up to 10 kilowatts in size and begins on 1 January 2010.

The Federal Government’s Renewable Energy Target (RET) scheme was delayed by the Senate last Thursday (18 June) and will not be voted on until at least August.

For people wanting to install a solar power system, this delay means that any Federal Government rebate is in limbo. The $8000 rebate ended on 9 June, but its expected replacement – originally planned for 1 July – will not be known for some time.

Politicians from both sides have suggested that in the meantime people installing solar power systems should keep their receipts and apply for rebates once the shape of the new system is known.

Anyone buying now would still receive Renewable Energy Certificates (RECs), however the multiplier proposed under the Solar Credits (part of the RET) is not in place.

Given the general uncertainty surrounding the RET, it’s probably best to wait and see.

Climate Change Minister Penny Wong has defended ending the rebate scheme early before the replacement system was ready, saying it was fiscally responsible. There were around 63,000 unprocessed applications for $8,000 each in Canberra the day it ended, giving some idea of how popular the scheme was proving.

The $8000 solar power rebate (and the larger Solar Homes and Communities Plan) was wound up three weeks early by Minister Peter Garrett yesterday, 9 June.

What does it all mean for people who want a solar power system and who missed out on the rebate?

The government solar power subsidies for homeowners in place up until yesterday used a combination of a rebate ($8000) and Renewable Energy Certificates (RECs).

The replacement system, as of today, uses only RECs to subsidise the purchase of renewable energy generators by householders, businesses and organisations. Effectively, RECs are the means used to encourage the uptake of renewable energy under the government’s Renewable Energy Target scheme.

Details are still to be published by the government, but here is a rundown of what the new scheme will mean for householders wanting a solar power system.

• RECs are an indicator of a power system’s efficiency, therefore one brand may attract more RECs than another.
• From now on, the number of RECs attracted by a new power system up to 1.5kW is subject to a multiplier. Until 2012, this multiplier is 5: a system that earned, for example, 33 RECs before 9 June now earns 165 RECs (also known as “solar credits”).
• RECs have a market value and are tradeable, which means their price varies according to market conditions. Currently they trade at $43. So for example if you buy a solar system today that attracts 33 RECs (or 165 after the multiplier), you will effectively receive a subsidy of $7,095.
• The solar credits only apply for systems up to 1.5kW. Any portion of the system that is larger receives the normal number of RECs.
• The new scheme isn’t properly in place yet. Anyone signing up for a solar power system from today can choose to receive RECs per the old scheme, then once the new regulations come through (some weeks after legislation is passed) receive the balance. Or you can choose to wait to apply for these solar credits.

Where to from here?
You can get an indicative quote on a solar system based on all the information available right now. We’ll let you know any other relevant information once we get the details from the government.

More information

Media release from Minister Peter Garrett, 9 June 2009, announcing the end of the old scheme

Fact sheet from Department of Climate Change: Supporting small generation system under the renewable energy target (RET) scheme

Renewable Energy Target Scheme Design

The Federal Government has just announced it is ending the Solar Homes and Communities Plan rebates today, Tuesday 9 June.

We understand that all applications posted to the government today will still be assessed for the $8000 rebate.

We are encouraging all prospective Ingenero (formerly SolarPay) customers to get their application forms to us before close of business today.

Details of the replacement scheme are not yet available, but we will communicate them as soon as they are known.

For further information see the media release from the Minister for the Environment, Heritage and the Arts.

The good news is that they didn’t close the scheme retrospectively, and it gives people a small window of opportunity to apply for the rebate.

Be paid for the electricity you produce

In Queensland, every kWh of electricity produced by your solar power system above what you use (at any given moment in time), can be sold back into the power grid for 44 cents or more (compared with the 18 cents it costs to purchase electricity). See Net Feed In Tariff for details.

Other states have their own regulations, and there is a push towards a standard Australian regulation, but nothing decided as yet.

Quality solar systems

We use quality brand panels with performance guarantees and warranties and aluminium brackets are used for maximum lifespan.
All installations are managed and carried out by licensed, insured electricians, accredited by the Business Council of Sustainable Energy.
All solar power systems come with a 10 year plain English warranty.

Why such an affordable price?

We are able to offer you an excellent price because we have negotiated bulk purchase for the panels and inverters. The prices we quote take into account the Federal Government’s Solar Credits are based on you assigning all RECs/Solar Credits to us.

Any additional costs?

Additional costs are rare, but may be incurred if:

• your switchboard does not comply with current regulations. In these circumstances the electrician is obliged by law to upgrade it
• the angle of your roof is such that additional brackets are needed to position the panels differently

The vast majority of our installations are standard, involving no additional costs.

Refund policy

Should your roof not be suitable, all money will be refunded in full with no administration fees charged.

Your household can make a difference

A 1.6kW system on your home will help reduce greenhouse gas emissions by about 2.3 tonnes a year.
Get a free solar power quote now.