Unprecedented growth under the Government’s Solar Homes and Communities Plan has resulted in early closure of this program. The new scheme which was to start in July 2009 nas been held up in Parliment.
When enacted, this legislation will provide a system of Solar Credits to new installations of household scale renewable energy generators eligible under the scheme.
The Solar Credits scheme was expected to commence from 1 July 2009 but will likely see it’s introduction delayed. The Scheme will be phased out by 2015-16. This recognises that technology costs are going down and the Carbon Pollution Reduction Scheme will also be providing incentives for renewable technologies.
Solar Credits will apply to the first 1.5 kilowatts of capacity installed. Generation from capacity above 1.5 kW will still be eligible for the standard 1:1 rate of RECs creation. The credits will only apply to the first small scale generation system installed at an address.
Example
Under the existing MRET scheme, a 1.5 kilowatt solar PV system is eligible for RECs valued at around $1500. Under Solar Credits, the household would receive five times that amount, or around $7,500, depending on the market value of the RECs.
The exact level of subsidy will depend on a number of factors, including the price of Renewable Energy Certificates (RECs), the deeming period chosen by the applicant (see above), the location of the solar PV system and the size of the system.