The Federal government has announced the Solar Credit Multiplier Scheme will be wound down sooner than was initially planned.
The Multiplier will reduce from 5 to 4 in July 2011, from 4 to 3 in July 2012, from 3 to 2 in July 2013, and from 2 to 1 in July 2014.
The Solar Credit Multiplier was not set to be phased out (that is, be reduced to a multiplier of 1) until 2015, but The Minister for Climate Change and Energy Efficiency, Greg Combet has explained that due to the reduced price of solar installation, this date has been brought forward.
“This is good news for the solar industry – we’ve been given more than 24 hours notice. To be given six to seven months notice is a very big win,” said John Grimes, Cheif Executive Oifficer of the Australian Solar Energy Society, at the Solar 2010 Conference in Canberra. Mr Grimes was referring to recent abrupt changes in solar policy, such as the changes to the New South Wales feed-in tariff scheme, and the Solar Homes and Communities Plan which have resulted in instability and uncertainty for the solar industry.
The reduction in the Solar Credits Scheme Multiplier will increase the cost of Solar Power Systems by around $1300.
Customers must have the solar system completely installed prior to 1 July 2011 to qualify for the current Solar Credits Scheme multiple of 5. Due to strong demand and backlogs of installation bookings, it is recommended that customers place their order for the solar power system prior to February to ensure the solar system is installed prior to the 1 July 2011 cut-off date. Otherwise, their pricing will be subject the lower Solar Credits Scheme Multiple, and hence a cost increase.