Solar Credit Scheme
In an effort to make the investment in solar energy more attactive the Federal Government announced the Solar Credit Scheme which effectively multiplies the number of RECs - Renewable Energy Credits for the first 1.5kW your system produces by a factor of 5. This can reduce the cost of a solar panel system by up to $7200.
Solar Credit Scheme Available To:
Unlike the previous system the Solar Credit Scheme is not means tested and is available to all Australian
 Homeowners,
Investment properties
Businesses
Community groups &
Schools
A solar credit is not available for properties that have already received or have approval for a financial benefit under the old scheme - Solar Homes and Communities Plan (SHCP)
Solar Credit Scheme Elegibility:
To be elegible for the solar credit scheme your solar panel installation but be caried out by an
a) Installed that is accredited by the Clean Energy Council (formerly Business Council for
Sustainable Energy - BCSE)
b) Installer must personally sign off on the installation report
c) Must be a new solar panel system
d) Solar Panels must be certified to international standards, either IEC61215, IEC61646 or IEC61730.
e) Grid-connected inverters must be approved for connection to the grid in Australia by complying
with AS4777 and having a current Certificate of Suitability.
If the solar systems is larger than 1.5kW, you will receive 5 times RECs - Renewable Energy Credits for the first 1.5kW and 1 times RECs - Renewable Energy Credits for every kW over 1.5kW.
A typical 1.5kw Solar system will cost around $10,000-$12,000 so the Solar Credit Scheme can save you up to 70% off the cost of investing in solar. 
Like RECs the number od solar credits you are entitled under the Solar Credit Scheme depends on your location.
The following table shows how much the solar credit scheme could save you based on 1.5kw system and a RECs - Renewable Energy Credits value of $40
Note prices for RECs are traded like share and have ranged in value from $35-$40 over the past 6 months.
|
Install Area |
Zone |
Factor |
System 1.5kw |
Years |
Total Recs |
Value RECs
@ say $40 |
Solar Credit
Scheme X 5 RECs
|
|
Townsville |
1 |
1.622 |
1.5 |
15 |
36 |
$1,440 |
$7,200 |
|
Broome |
2 |
1.536 |
1.5 |
15 |
35 |
$1,400 |
$7,000 |
Sydney,
Brisbane or
Perth |
3 |
1.382 |
1.5 |
15 |
31 |
$1,240 |
$6,200 |
Melbourne
|
4 |
1.185 |
1.5 |
15 |
27 |
$1,080 |
$5,400 |
Solar Credit Scheme -
The Federal Government has stated the solar credit scheme will run for 7 years from 2010 however solar panel systems installed from 2013 will have a reduced multiplier effect on your RECs.
|
Year |
Multiplier |
|
2010 |
5 |
|
2011 |
5 |
|
2012 |
5 |
|
2013 |
4 |
|
2014 |
3 |
|
2015 |
2 |
|
2016 |
1 |
Who Pays for Solar Credit Scheme
Electricity providers are required to meet renewable energy targets. One way they can achieve this is by buying rights to the benefits of solar systems in the form of RECs.
Ultimately these costs are passed onto all consumers or consumers that want to buy renewable energy in the form of higher electricity rates.
Trading Solar Credit Scheme RECs
As with RECs normally, you can trade them yourself however this is probably difficult for the average solar panel installation and alsio probably not worth the effort.
Installers generally assume you will sign over your RECs entitlements so deduct the value of the RECs and Solar Credits off the price they quote you for a Solar Panel System.
The Federal Government's Solar Credit Scheme makes this the best time ever for investing in renewable energy and reducing your electricity bill and CO2 footprint. To see how much you can also make ongoing saving with
State Government's Feed in Tariffs.
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