Home: Renewable Energy News: Monday 29 June, 2009

Renewable Energy News

MONDAY 29 JUNE, 2009 |

Australian Solar Rebates Status Summary

Australian solar rebates status
The last few weeks has seen so many changes to rebates and incentives systems for solar power in Australia, many consumers and for that matter, providers, are confused as to the current situation. The following is a brief summary of where things stand as at Monday, June 29 2009:

Solar hot water rebates

Solar hot water rebates throughout Australia remain unchanged. Federal government rebates of up to $1600 are available to install solar and heat pump hot water systems. Additional funding may be accessed through various state schemes and Renewable Energy Certificates also continue to accompany qualifying systems. Read more about solar hot water rebates.

Grid connect solar power

The Solar Credits scheme offers up to $9,000 in rebates to homes, businesses and community groups that install a solar power system. Unlike the previous rebate, it is not means-tested.

The Solar Credits scheme is part of the Renewable Energy Target bill, legislation that has been deferred until August 2009 at this point; however, it is expected to pass during the week commencing August 11.

Given the installation backlog of the previous rebate, some consumers are starting the process of ordering a system now with view to an August or later installation date. Read more about the Solar Credits scheme.

Off grid solar power

Small scale installations by households, businesses and community groups (except in Western Australia, which is still covered by RRPGP funding) completed on or after 9 June 2009 may receive up to $9,000 in rebates for the first 1.5 kilowatts of the system under the Solar Credits program.

Solar feed in tariffs

A feed in tariff is a premium amount paid to grid connected solar power system owners for the electricity they generate. Feed in tariff schemes are active in South Australia, the Australian Capital Territory, parts of the Northern Territory, Tasmania and Queensland; with programs in New South Wales, Western Australia and Victoria to commence soon. Read more about feed in tariffs.

Business specific incentives

Businesses large and small are covered under the Solar Credits scheme and feed in tariffs, but can also claim a tax deduction of up to 50% under the Small Business and General Business Tax Break legislation. Read more about business solar incentives.

Renewable energy certificates

RECs, otherwise known as Renewable Energy Certificates, are a form of currency and are available when purchasing qualifying renewable energy equipment. RECs also form the basis of the Solar Credits scheme, which is a Renewable Energy Certificate multiplier system. While buying a solar panel on its own rather than as part of a system will not qualify for the Solar Credits program, it will still attract the normal number of RECs. Read more about Renewable Energy Certificates.

Victoria's Solar Feed In Tariff Legislation Passed

The Victorian Government’s new solar feed-in tariff legislation was passed by the Victorian Parliament on 25 June 2009 after its original draft legislation met with stiff opposition. The Government states that amendments were made "in response to input from responsible environment groups"

Energy and Resources Minister Peter Batchelor said under the Electricity Industry Amendment (Premium Solar Feed-In Tariff) legislation 2009, "Through our scheme, an average Victorian household with a 1.5kW photovoltaic system will get around $300 off their power bill for energy sold back into the grid. This is on top of about $300 in savings Victorian households with solar systems will receive by using the electricity these systems produce in their own home."

Victorian households, businesses and community groups will also benefit from the new Solar Credits scheme which offers up to $9,000 in rebates on a grid connect solar power system.

The final structure of the Victorian feed-in tariff includes:

- 60 cents credit per kilowatt hour for energy fed back into the grid within that year; i.e. a time limited credit.

- The tariff is paid to residences, community organisations and small businesses with energy consumption less than 100 MWh a year

- An array size limit of 5kW applies

This outcome is a significant improvement on the feed-in tariff initially proposed by the Victorian government. Amendments introduced in the Upper House which improved the scheme include:

- Extending participation to community organisations and small businesses with energy consumption less than 100 MWh a year (they were initially excluded)

- Increasing the array size limit from 2kW to 5kW

Two electricity retailers have also provided letters that state they will provide cash or rollover credits for energy produced, rather than these credits "expiring" as was initially proposed.

The additional amendment put by the Greens for the tariff to be paid on the gross output (rather than the net output) was not accepted.

The Greens have been lobbying for a gross system not only in Victoria, but across the country. Last week, Green Deputy Leader Senator Christine Milne tabled a petition from over 17,000 Australians calling on the Parliament to implement a gross, uniform national feed-in tariff program to give renewable energy technologies the support they deserve.

The petition signatures were gathered via FeedInTariff.com.au; an Energy Matters initiative.