The Government has announced further proposed amendments to the Renewable Energy Target (RET).
Minister for Climate Change and Energy Efficiency, Senator Penny Wong, announced the following a short time ago.
– Excess banked RECs: Should very high numbers of Renewable Energy Certificates (RECs) be created from small-scale renewable sources in the next six months, the Bill includes a provision to temporarily increase the target in 2012 and 2013 to provide greater investment certainty. The 20% by 2020 target will remain, as any temporary increase will be offset by reducing targets by the same total amount of RECs between 2016 and 2019.
– Household RECs review: The process for review will be strengthened in the Bill, with the Minister to be given independent advice on matters relating to RECs under the Small-scale Renewable Energy Scheme (SRES), including whether the $40 REC price remains appropriate over time.
– Solar Credits: To take into account changes in the cost of solar panels, the Renewable Energy Regulator will be given authority to adjust the Solar Credits multiplier. The Government will consult on draft regulations to implement this arrangement later this year.
Minister Wong’s office says these amendments are the product of ongoing consultation between the Government, renewable energy industry stakeholders and the community and that they address many of the issues raised by the Opposition, the Greens and Senator Nick Xenophon.
“It is imperative for the ongoing growth of the renewables sector that the legislation passes the Parliament this week.” said Minister Wong.
The legislation will split the Renewable Energy Target into the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET).
The LRET will cover renewable energy projects including wind farms and the SRES will provide a set level of support for small-scale technologies such as home solar power and solar hot water systems.
