Solar Power - New Solar Credits Scheme

History...

The Solar Credits Scheme replaces the Federal Government's Solar Homes and Communities Plan (SHCP) that was suspended abruptly on June 9th 2009. 

 

Overview...

The Solar Credits Scheme has replaced the $8,000 government rebate for Solar Power Systems and is open to all Australian residents without the need for a previously required means test i.e. all homeowners and businesses are eligible regardless of income. This new incentive utilises the existing Renewable Energy Certificate (REC's) system, established under the Federal Government's Mandatory Renewable Energy Target legislation, but includes a 5x multiplier to the number of REC's or Solar Credits for systems up to 1.5kW.

If you were not previously eligible under the old $8,000 rebate scheme, you may now be eligible for incentives under this new scheme.  

 

How does it Work?

There are several major differences between the old $8,000 rebate and the current Solar Credits Scheme.

• While the old rebate had a $100,000 means test for the household, the Solar Credits scheme makes all income levels eligible for incentives.
• Consumers and businesses alike are now eligible under the Solar Credits Scheme.
• incentives are also available for properties that are not primary residences like investment properties and holiday homes.
  

The main financial benefit under the Solar Credits Scheme is an increase in the number of Renewable Energy Certificates (RECs) that a solar system produces. Each system installed is eligible, when installed by an accredited installer, to generate RECs. 

Dingo Solar is a registered agent for renewable energy certificates (RECs).  In return for a point-of-sale discount on the price of your new solar power system, we require you to assign your RECs to us.  This is as simple as signing a form.  We then sell the RECs, created as a result of the installation of your solar power system, on to a third party to recover the money from the discount.

 

In comparison to the $8,000 rebate scheme, a solar system installed under the Solar Credits Scheme can receive around $5000 off the cost of a solar power system. These Credits will assist with the upfront cost of installing solar power systems. Solar Credits will apply to new installations only of solar power systems.

The number of additional credits will be based on the multiple as set out in the following table and location.  

Year	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	From 2015
Multiplier	5	5	5	4	3	2	No multiplier (1)

 

PV systems with a capacity above 1.5 kW are also eligible for the multiplier at 1:5 up to 1.5kW and then the standard 1:1 rate of RECs creation beyond that .

The credits will only apply to the first small scale generation system installed at an address. Under the solar credits scheme, home owners can receive certificates for the lifetime generation of the system either upfront or over longer time periods of one, five or fifteen years This is called the deeming period. 

For more Information visit - http://www.climatechange.gov.au/renewabletarget/index.html

 

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