MONDAY 11 APRIL, 2011 |
Australia's Solar Credits Rebate To Be Slashed Further?
Australia's popular Solar Credits rebate is already facing an early reduction,
with possibly another to follow says a report in a major newspaper.
Currently, the Solar
is based on a 5X renewable energy certificate
multiplier. The 5X multiplier was originally slated to reduce to 4X in July
2012; but in December last year, the government announced the Solar
Credits multiplier reduction
would be brought forward by one year.
The first early reduction, which occurs on July 1, 2011, translates to a loss of
up to $1,200 in rebates on the purchase of a system from July onwards. The
looming deadline has seen a rush on solar power installations throughout the
country as systems must be installed, rather than just ordered as has been the
case in other early solar
reductions, by midnight on June 30 in order to be eligible for the
full Solar Credits rebate.
According to a Sydney
Morning Herald article
, the government is also considering reducing the new
multiplier level from four to three earlier again and making changes to the
subsidy to encourage buyers of solar power to purchase larger systems.
The article also appears to allude to solar power being a major culprit in
electricity price rises; a myth that has repeatedly been busted; most recently
by the Australian Government's climate change advisor, Professor
Another contentious point mentioned in the report is the value of solar panels
in terms of greenhouse gas emissions reduction. The article claims small scale
solar power systems reduce greenhouse emissions at a cost of about $200 or $300
a tonne of carbon dioxide. National solar power solutions provider Energy
Matters calculates the cost
of carbon abatement of a 1.5kW home
solar power system
at far less, approximately $80 per tonne over 25 years at
the current full 5X multiplier subsidisation level.
Given a rooftop solar panel array will likely produce clean electricity beyond
the 25 year time frame and coupled with rebates reductions already in the
pipeline, Energy Matters says carbon abatement will be even cheaper in terms of
subsidisation under the current rebate reduction schedule.
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