(Some of the information in this entry is out of date: please refer to this newer entry for up-to-date information on RECs multipliers).
While the Federal Government created œsolar chaos yesterday by calling off the popular $8k solar rebate three weeks early – with less than eight hours notice – the new Solar Credits scheme has at least been brought forward and commences today, 10 June 2009.
Full details will be provided when the legislation is tabled in Federal parliament next week. It will be backdated to apply to all eligible installations from today onwards.
The Solar Credits scheme is available for all grid connected buildings, whether principal place of residence, rental, holiday home, commerical premises or rural construction. The scheme has no means test; the rebate threshold of a household taxable income of $100,000 has been abolished.
In replacing the $8,000 rebate, the Solar Credits scheme operates by attributing a value 5 times the market value of Renewable Energy Certificates (RECs).
RECs commenced nationally in December 2001, and are designed to place a value on the displacement of greenhouse gases. One REC is equivalent to approximately one tonne of abated greenhouse emmissions. They provide financial incentive to place less reliance on the burning of fossil fuel.
There are 21 RECs attached to a 1kW solar energy installation. The value of a REC is subject to market variation, though the price has been static for some time. Green Bank has been buying RECs for many months at $46 each. This equates to $966 value in RECs for a 1kW installation. Under Solar Credits, this figure is multiplied by five, to give a total discount of $4,830.
Solar Credits will apply to the first 1.5 kW of capacity installed, meaning a maximum value of approximately $7,000. For systems above 1.5kW, customers will be eligible for the standard 1:1 rate of RECs. Solar Credits/RECs are issued by the Office of Renewable Energy Regulator (ORER) for the lifetime generation of the system, and customers can elect to either assign them to the installer to keep the upfront cost of the solar energy installation down, or hold on to them just as you would a share portfolio.
© 2009 Solar Choice Pty Ltd