Government Rebates
NEWS FLASH - Solar Credits to be reduced from 1st July 2011
Solar Credits replace the Solar homes and Communities Plan (SHCP) rebate. The Solar Credits Scheme is part of the Renewable Energy Target bill, legislation that was passed on August 20, 2009. Under the new Solar Credits scheme, one REC will be initially multiplied by 5, therefore offering five times the dollar value. The 5 x multiplier was originally to be in place from the start of the program to the end of the financial year in 2012, however the Government has recently announced that this is to be brought forward to the end of the current financial year. This means that as of 1st July 2011, the 5 x multiplier will be reduced to a 4 x multiplier, thus decreasing the discount you receive on your solar power system.
Who is eligible for the Solar Credits scheme?
Unlike the old SHCP rebate which was only available to homeowners earning less than $100,00 a year, the new scheme is not means tested. Businesses and Community Groups are also eligible for the Solar Credits scheme.
What are RECs?
When you install solar power, solar water heating and other renewable energy technologies you are helping to reduce greenhouse gas emissions. This entitles you to create environmental credits called Renewable Energy Certificates or RECs for short. These credits are a commodity and tradeable like shares on the Australian Stock Exchange. Like other commodities the price of RECs is not fixed and varies with supply and demand. 1 REC equals 1MWh of generation from a renewable source and is part of the Mandatory Renewable Energy Target which is an industry development mechanism created by government in 2001.
How do I claim the RECs?
You have two options for claiming your RECs.
Option 1: You can claim the value of the RECs yourself using a trading company of your choice. This means that you will pay the full price of the solar power system up front and will claim the RECs yourself after the installation.
Option 2: You can assign the RECs to Pritchett Electrical to claim on your behalf. We will subtract the value of the RECs from the price of your solar system meaning that you only have to pay the discounted price. There is also less paperwork for you to worry about.
Please feel free to contact us if you have any questions regarding the Solar Credits scheme, or for further information please visit the Office of the Renewable Energy Regulator (ORER) website.
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