Solar Credits
Solar credits are applicable when you install solar panels (photovoltaic systems) and other small-scale wind and micro hydro-electricity systems. The Solar Credits scheme commenced on the 9th June, 2009 and replaced the Federal Government’s $8,000 Solar Rebate (Solar Homes and Community Plan – SHCP)
In short, with Solar Credits you get 5 times the number of Renewable Energy Certificates (RECs) up to the first 1.5kW of your system.
Let’s take an example of a 1.5kW Solar PV System to be installed in Sydney;
System Size: 1.5kW
REC price = $35*
Zone: 3
A 1.5kW System attracts 31 RECs in Zone 3. Hence Solar Credits are calculated as follows;
31 RECs x 5 = 155 Renewable Energy Certificates (applying the 5 times multiplier)
155 RECs x $35 = $5,425
Consumers can assign their RECs at the time of installation to Green Solar Solutions for a point of sale discount on the system. Alternatively, they can forgo the discount and hold onto their RECs, possibly to trade them at a later date, similar to the way one would trade shares.
For larger systems, the standard rate for RECs applies after the first 1.5kW. For example, a 2kW system in zone 3 would receive 155 RECs for the first 1.5kW (factoring in the 5 times multiplier), then the standard RECs would apply. In total, a 2kW system would create 165 RECs. If the REC price was at $35*, then the REC value would be $5,775.
(*This figure may not reflect the current market price for RECs which fluctuates based on market conditions, we are using a value of $35 simply for the purpose of this example)
Who is eligible?
The Australian solar credits program is applicable to home owners, businesses and community groups. Eligible properties include residential properties (whether it’s the principal place of residence, rental property or holiday home), commercial properties and rural properties.
Additionally there is NO MEANS TESTING under the new scheme
