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 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

This entry was posted on Wednesday, June 10th, 2009 at 2:58 pm 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.