Update: June 2009: Australian Solar Credits Program launched – FAQ – click here
Breaking news: The Australian Government has released further details on its 20 per cent Renewable Energy Target and a new ‘Solar Credits’ program that the government says will encourage the uptake of home solar power systems and contribute to substantially reducing greenhouse gas emissions .
While the recent Carbon Reduction Scheme white paper offered little detail regarding the future of incentives for the uptake of home solar power systems, a press release issued a short time ago by the Australian government provides a glimpse of what could spell very good news for home owners and the Australian solar industry.
According to the draft legislation which has been released, the solar credits system will work by allowing owners of solar panels to earn five times the current level of Renewable Energy Certificates (RECs) for each mega-watt hour of electricity produced by their solar panels. As RECs can be assigned to solar equipment suppliers, the value of the certificates can be offered as a point of sale discount of up to $7,500 for purchasers of solar PV systems.
Minister for the Environment Peter Garrett stated the solar credits multiplier will be provided for new micro-generation systems up to 1.5 kilowatts during the next financial year and would phase down from then to 2015-16.
Minister for Climate Change Senator Penny Wong stated the amendments to the legislation would see 45,000 gigawatt-hours (GWh) of electricity to be sourced from renewable energy sources such as solar, wind and geothermal in the year 2020.
The current $8,000 solar rebate has come under heavy fire in recent months from many sectors after the Rudd government earlier this year implemented a means test that blocked households with an income of over $100,000 receiving the rebate.
While details are still somewhat sketchy at this point in time and there has been no mention of the proposed gross feed in tariff program that pays solar array owners a premium rate per kilowatt for electricity they produce, the solar credits system could now make home solar power more accessible to many families in Australia, without much of the paperwork and waiting period associated with the current rebate system.
NEW: Australia’s Solar Credits Program – Update
Related:
Australian Solar Credits Program FAQ
