The Solar Credits scheme was scheduled to commence on July 1, 2009, but was unexpectedly brought forward and commenced on June 10, 2009; pending relevant legislation being passed.
WHAT ARE SOLAR CREDITS?
In place of the $8,000 rebate, the Federal Government is proposing to introduce the Solar Credits scheme. This scheme is part of the Federal Government's Renewable Energy Target. Which aims to achieve the equivalent of at least 20 per cent of Australia's electricity supply be generated from renewable sources by 2020.
Solar Credits will be provided in the form of Renewable Energy Certificates (RECs), an electronic currency, generated upon installation of a solar power system.
In comparison with the old rebate scheme, an installed solar power system will receive five times the number of RECs for the first 1.5 kW of system capacity (i.e. the first nine panels).
The level of financial support provided by Solar Credits will depend on the price of RECs(which may vary over time) and the location and size of the system. For example, based on $50 REC price in 2009, a solar system in Melbourne will receive $5,150 for a 1.0 kW system or $7,750 for a 1.5 kW system.
By requesting customers to assign their RECs to Solarbank, Solarbank is able to offer a customer a point of sale discount, which reduces the up-front purchase cost and makes the solar power system more affordable.
WHO STANDS TO BENEFIT FROM SOLAR CREDITS?
All households and small businesses. In addition, the $100,000 annual income limit no longer applies. This means that, for example, holiday homes, milk bars, shopping malls, investment properties, etcetera are now all eligible for rebates.
WHEN WILL SOLAR CREDITS BE AVAILABLE?
Legislation necessary for the issue of rebates under the Solar Credits scheme is expected to passed in Federal Parliament during the week starting on August 11. All solar generation systems installed from June 10, however, will be eligible to receive Solar Credits.
WHAT IS VICTORIA'S REED-IN TARIFF?
The Victorian Government supports investment in solar power systems via its feed-in tariff scheme.
Under the scheme, households, community groups and small businesses with solar power systems up to 5.0kW in size are eligible to receive a credit of 60 cents per kilowatt hour for energy the feed back in grid. This is about four times the cost of electricity in Victoria.
According to Victoria's Energy and Resources Minister, Per Batchelor, this scheme will mean an average Victorian household with a 1.5kW photovoltaic system will get around $300 of their power bill for energy sold back into the grid.
This is on top of about R300 in savings Victorian households with solar systems will receive by using the electricity these systems produce in their own home.
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