The value of Renewable Energy Certificates (RECs) still remains low, threatening the construction of large scale clean power projects and making home solar energy, off-grid/remote solar power and solar hot water systems less affordable.
Renewable Energy Certificate values play an important role in programs such as the Solar Credits scheme. Ironically, the situation has come about in part due to a flood of RECs generated by the purchase of solar hot water systems and heat pumps.
Fears have been raised that in order to address the situation, some subsidies, solar rebates and grants for home renewable energy may be reduced or prematurely ended.
The Australian Greens have a plan they say will help rectify the situation while still providing support for home solar power.
Greens Deputy Leader Senator Christine Milne will today announce the drafting of a private member’s bill that would see solar hot water systems and solar panel installations on rooftops of homes and business being added to Australia’s Renewable Energy Target of 20 per cent by 2020 rather than counting towards it; while still attracting RECs.
Senator Milne acknowledges it is not the perfect policy, but an achievable way to rapidly address the issue of falling REC prices.
The Opposition has already indicated it would seriously consider supporting the bill and if it did so, this would force the Rudd Government to redraft Australia’s renewable energy targets.
