Solar Credits Scheme will produce phantom benefits

Sustainability organisations are concerned the upcoming Solar Credits Scheme will damage the future of Australia’s small-scale renewable energy generation.

In a joint statement from the Alternative Technology Association (ATA), Greenpeace and the Moreland Energy Foundation, they said it is imperative the federal government stops its inconsistent and confusing solar power policies, or risk Australia’s solar future.

The statement, submitted to the Department of Climate Change draft Renewable Energy Target (RET) legislation committee, said the government’s new Solar Credits Scheme will actually reverse the impact of installing household solar systems.

“Households investing in solar do so at significant personal cost. In return for their sacrifice, the government is effectively cancelling out the greenness of their solar system,” said Damien Moyse, Energy Advocate for the ATA.

Government figures show the amount of renewable energy installed in Australia is significantly increasing.  According to a recent survey by the ATA, there are two main motivators for this growing trend. To reduce emissions associated with electricity consumption and to increase the amount of renewable energy around the country.

Under the Solar Credits Scheme, due to start in July this year, homes installing solar panels will be supplied with five Renewable Energy Certificates (RECs) for every megawatt-hour of clean energy their system produces, instead of the usual one REC per megawatt-hour.

“Supplying extra RECs to solar homes means four out of the five RECs will be phantom and not represent real clean energy generation,” Mr Moyse said.

RECs are the trading currency for renewable energy. One REC is equal to one megawatt-hour of clean energy generation.

In order to recoup up to $7500 of the upfront cost of their system, solar homes will have to sell the extra RECs to large energy consumers or electricity retailers.

Mr Moyse said the new scheme will effectively nullify their climate-friendly solar electricity generation.

“These phantom RECs will be helping electricity retailers achieve their Renewable Energy Targets (RET) on paper, but not in real renewable electricity generation.”

Under the RET, electricity retailers are required to purchase 20% of their electricity from renewable sources by 2020.

The groups are calling for the federal government to put a stop to ineffective solar policies and fulfill its election commitment to consider the introduction of a strong feed-in tariff for small-scale renewables.

“The latest evidence suggests that climate change is happening faster than predicted and the burning of coal is at the core of the problem,” Mr Moyse said.

“A national gross feed-in tariff, like the one adopted by the ACT, will be a positive and decisive step to securing the future for small-scale renewable energy.”

Related Topics

• Solar power rebates in limbo until at least August
  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...
  
  
• The new solar world arrives three weeks early
  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...
  
  
• Fingers crossed for new Federal solar power subsidy this week
  Solar power systems once again look like being affordable for many Australian households. The Federal Government has relented and detached the Renewable Energy Target (RET) legislation from the Carbon Pollution...
  
  

Tags: RECs, Renewable energy, RET, Solar Credits Scheme

This entry was posted on Monday, February 23rd, 2009 at 9:00 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.