Posts Tagged ‘rebate’

The Brisbane City Council has officially introduced a rebate for the installation of solar hot water in Brisbane.

The first 1,500 eligible residents receive an additional $400 off the standard solar hot water costs - on top of the $1,000 federal rebate and the renewable energy certificates (this payment varies and is currently between $1,500 and $2,000).

As a participating supplier, SolarPay.com.au offers the rebate as a Point of Sale discount. You will see it when you go through the quoting process.

As with all other rebates, we look after the forms and handle the council contact. So all you have to do is to make a decision to go ahead.

With our stall at the Riverfestival yesterday, we have already spoken to many interested people (along with 4 other suppliers).

Brisbane Has Seen the Light

It is great that the Brisbane City Council has realised that solar hot water is the single biggest consumer of electricity in every household. Lord Mayor Campbell Newman highlighted that for most people it will only be a 4-5 year payback and then they save money “year after year”.

In his speech, he also points out that solar hot water will make a significant difference to the hip pockets of householders across Brisbane.

I hope that the council gets absolutely overwhelmed with the response and has to figure out how to make the rebate available to many more householders than they are planning for now. And that other councils who want to reach sustainable targets follow suit.

Good on Brisbane for taking that initiative. And thanks a lot to pigswillfly.com.au for alerting me to it.

Find Out Whether You Can Benefit From Solar Hot Water.

You can get an instant quote right now. There are 23 simple questions that lets our online calculator work out the best solution for your situation. That way you know exactly whether you can benefit from solar hot water.

Start with 1. Find System.

Prices for Renewable Energy Certificates are falling again.

It was only 4 days ago that the Renewable Energy Certificate price dropped from $49 to $47. Today, we got notice that the going price is going to be $43.

What that means is that the cost for a standard roof mounted system is $186 more than it was last week.

Good or Bad?

Of course is is bad that the you have to pay more for a solar hot water system. However, compared to what the prices were like in the past, $43 is still a huge rebate ($1,333 for the standard system and $1,935 for the 400 Litre split system). And that is in addition to the $1,000 federal rebate you might be eligible for.

The other good thing is that the price drop shows that there are more REC’s being offered than companies wanting to purchase them. That means we are well on the way to increasing the renewable energy production.

The Decision

Naturally, you want to get the best price for your REC’s. So the question is whether to wait and hope that the price will increase again (with the risk that it might fall further).

Or to purchase now to get what you can before prices for REC’s fall even further.

Unfortunately, I do not know what the future will bring. So I cannot advice on the best course of action. But looking at the volatility of the REC prices in the past, I would not be surprised if they continue to fall. On the other hand, significant rises are unlikely.

And when you look at the lifetime benefit from a solar hot water heater, the significance of the REC payment pales in comparison.

Payment for renewable energy certificates have fluctuated between $10 as recently as 18 months ago and a current high of $49.

Every owner of a solar hot water system can generate a certain number of renewable energy certificates (REC’s) and sell them. We look after all the organisation and paperwork for you, so all you will notice is a reduction of the purchase price.

Why does the renewable energy certificate price fluctuate?

Simply because of the demand. Energy retailers have to purchase a certain number of REC’s to reach the mandatory renewable energy target. Other offsetting companies use them to offset greenhouse gas emissions. As more people are demanding these services, the price goes up.

You benefit, because you are paid the value of the renewable energy certificates that are created for your solar hot water system.

Can the prices fall again?

Yes most definitely. They can and have done so in the past.

Can they rise higher?

In theory yes. It just needs more buyers who are willing purchase at higher prices.

However, the mandatory renewable energy target stipulates a penalty rate of $40 (plus 30% company tax). This means that when prices rise above $52, it becomes cheaper to pay the penalty.

Renewable Energy Certificates (REC) have been set up by the Australian government as a form of currency. One REC can be created for every kWh of renewable energy that is produced.

Energy retailers on the other hand need to surrender enough REC’s each year to contribute their share to the Mandatory Renewable Energy Target.

Even though a solar hot water systems does not produce electricity, it produces energy in the form of hot water. Rather than measuring the actual output, a deemed number of REC’s is associated to each model of solar hot water unit. This varies depending on where you are located in Australia (your quote includes exact details).

Your obligation

It is up to you to create the REC’s. However, we prepare everything for you and actually reduce the price by what you get for the REC’s. That way you do not have to pay it first and then get it back. Instead you only have to check and sign the pre-filled form.

Please note that this is different to the Federal Solar Hot Water Rebate, which we cannot claim on your behalf.

Your choice

You may choose to voluntarily surrender your REC’s. That means that you indirectly help to create more renewable energy. If you do that, you cannot sell the REC’s and need to pay an additional $1,400 to $1,800.

Most Australian individuals qualify for at least one solar hot water rebate. Many qualify for all available rebates. The quickest way to find out how much the government pays you is to go through the online process.

There are 3 general rebates and financial incentives:

The Federal Solar Hot Water Rebate

The federal government pays eligible householders a $1,000 solar hot water rebate if you fulfill these criteria:

• The old system to be replaced is an electric storage hot water system
• The solar hot water system has to have at least 20 REC’s (all our systems do)
• It is installed by a qualified tradesperson (electrician or plumber)
• It is installed in a principal place of residence
• You have to be an Australian individual, 18 years or over
• The last taxable family income has to be under $100,000
• You have to apply within six months of installing the system

Renewable Energy Certificates (REC’s)

Technically not a rebate, REC’s are an important financial incentive. They can be assigned to a registered agent who pays between $45 and $48 for each REC. Most solar hot water systems have between 30 and 40 REC’s. Criteria are:

• The solar hot water system needs to be on the register of solar water heaters.
• The REC’s need to be created within 12 month of installation

For details, see the FAQ on renewable energy certificates.

State Rebates

Queensland does not currently offer a state rebate, other states do and we will add them as we are getting ready to deliver to other states.

Return to FAQ’s