Solar Credits Scheme
The Solar Credits Scheme is a mechanism that boosts financial support to households, businesses and community groups that install small-scale Solar PV Power, Wind and Hydro electricity systems by multiplying the number of RECs able to be created for eligible installations. The scheme is available to just about every Australian household, business and community group.
The Solar Credits Scheme is based on the Small Technology Certificate (STC) system, but with a certificate multiplier incentive offering up to 3 x the usual number of RECs issued for solar power systems up to 1.5kW. This means the rebate applies a 3 x multiplier to STCs earned in the first 1.5 kW of capacity in an installed Solar PV Power system, and the balance of the system size in kW would earn 1 x eligible RECs.
Lets consider an example of the purchase and installation of a 2 kW Solar PV Power system and assuming the RECs value = $35
- The first 1.5 kW will earn 93 STCs, earning a rebate of $3255
- The remaining 0.5 kW will earn 10 RECs (1:1 STCs), earning an additional $350.
- Therefore, the total savings earned for a 2 kW system = $3605 off the total installed priced of a Solar PV Power system.
The level of financial support provided by the Solar Credits Scheme will depend on the size and location of the system, and market value of RECs which can vary over time due to market forces.
The quantity of STCs allocated to a Solar PV Power or Solar Hot Water installation vary according to which zone the installation is based. The zones have been structured according to the amount of renewable energy a solar system would produce in the region due to the regions intensity of the sun. A zone with a higher level of sunshine and solar intensity, such as Northern Queensland, is likely to produce more solar energy than a southern region such as Melbourne or Tasmania (which has a lower intensity). Therefore the higher intensity region will earn more RECs per kW installed.
Based on a $35 STC price in mid 2010, a solar PV system in Newcastle, Sydney, Perth, Adelaide, Brisbane or Canberra will receive:
- 1.0 kW Solar PV System: $2170 (62 STCs)
- 1.5 kW Solar PV System: $3255 (93 STCs)
- 2.0 kW Solar PV System: $3605 (103 STCs)
- 2.5 kW Solar PV System: $3990 (114 STCs)
- 3.0 kW Solar PV System: $4340 (124 STCs)
The Solar Credits Scheme only applies to the first small-scale generation system installed at an address. Additional installations at the same address will still earn STCs, however the 2 x multiplier for the first 1.5 kW will not apply.
Solar Credits for New Homes
An application for the Solar Credits rebate can be lodged while your home is under construction, if upon completion of the home it will be your principle place of residence and within 6 months of lodging a rebate application you are able to present both a drivers license and electoral role confirmation with the installation address listed.
A statutory declaration form will need to accompany your rebate application, which can be downloaded here (PDF)
More questions on the Solar Credits Scheme;
Get in contact with a Clean Energy Consultant.... OR ....Browse the Solar Credits F.A.Q....