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.

Yesterday’s Queensland state budget re-stated the government’s promise of helping to fund the retrofit of 200,000 Queensland homes with solar hot water systems or heat pumps, but details are nowhere to be found in the budget papers.

This is curious, particularly as the program is due to begin in two weeks on 1 July.

While the government is to be applauded for setting a target of 200,000 retrofitting energy-efficient
hot water systems in households, how they are going to deliver and what it will cost remains unclear.

The hot water system retrofits are to be made under the Queensland Solar Hot Water Program, which is funded by the Queensland Future Growth Fund. While both get a mention in the text of the budget papers, there are no details.

A few items that ARE specifically costed include: $4.3 million to Ergon Energy Corporation for the Birdsville Geothermal Power Station; $3 million to Mackay Sugar Co-operative for the Mackay Sugar Cogeneration Project; $2.5 million to the CSIRO for SolarGas One.

These figures are considerably less than what the Queensland Solar Hot Water Program would cost, so it’s absence is not explained by any lack of importance.

An installed solar hot water system currently costs around $2000 (including Federal Government rebate and Renewable Energy Certificates); the cost of 200,000 systems to the State government would be around $400 million.

If the State Government provides 30% of the 200,000 retrofits to pensioners and low income earners for $100 (as they have stated) and the rest for $500, the public will make a contribution of $74 million. The difference, to be funded by the government, is around $326 million.

Where this money is to come from remains a mystery.

A new government initiative to help homeowners install water- and energy-efficient products kicks off on 1 July.

The Green Loans Program is designed to help householders, especially families, install products such as renewable energy systems including solar power, wall insulation, glazing, efficient hot water systems and water tanks.

Sunshine Coast financial institution Maleny Credit Union (MCU) is one of the government’s first partners in the scheme.

How the Green Loans Program works

• Book a free home sustainability assessment with a qualified assessor to investigate the best actions you can take – you can register your interest now.
• The assessor will write a home sustainability report especially for you, and it forms the basis for your Green Loan application. The report is valid for six months.
• You can apply for a loan of up to $10,000, interest-free for the first four years.
• There is no application fee for a Green Loan.
• Only one interest-free Green Loan can be provided for each home assessment report, however a Green Loan can be used to finance a number of home projects.

If you want to borrow more than $10,000 under the scheme, you can take out two loans from MCU:

• An interest-free Green Personal Loan for $10,000, and
• Green Appliance Loan for the additional amount of funds required, up to $15,000 at MCU’s standard loan terms and conditions. Go to MCU’s website for rates available.

About Maleny Credit Union

As an ethical organization, MCU lends approximately 60% of its funds for green, sustainable, and socially responsible loan purposes, and as such is deemed an ethical investment.

MCU won a number of the highly acclaimed Money magazine awards, primarily for its environmentally designed loans, including being judged the winner of the 2009 Best Socially Responsible Product – MCU Green Appliance Loan.

For more information on the Green Loans Program including a full list of eligibility guidelines visit www.environment.gov.au/greenloans. For more information about MCU see their website or phone 07 5499 8988.

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