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                  Climate Action, Local and Global

SOLAR POWER

Changes to RECS

(28/2/10) The Rudd Government's handling of RECs (renewable energy credits) and in particular the extra RECS given to homeowners who install solar PV schemes has distorted the renewable energy market  and cause problems for larger renewable energy projects. It appears they have been listening to calls from sustainability groups and changes have been made :

"The Rudd Government's Renewable Energy Target scheme will be enhanced to
provide greater certainty for households, employees and businesses within
the renewable energy industry, as we build the low pollution economy of the
future.

From 1 January 2011 the Renewable Energy Target, which guarantees 20 per
cent of Australia's energy in 2020 will come from renewable sources, will
include two parts - the Small-scale Renewable Energy Scheme (SRES) and the
Large-scale Renewable Energy Target (LRET).

The LRET, covering large-scale renewable energy projects like wind farms,
commercial solar and geothermal, will deliver the vast majority of the 2020
target. This will free these projects from uncertainties that may have been
caused by strong demand for small-scale renewable technologies.

The SRES will cover small-scale technologies such as solar panels and solar
hot water systems and deliver the remainder of the target. It will provide a
fixed price of $40 per megawatt hour of electricity produced, providing
direct support for households that take action to reduce emissions."

What this means for a consumer :

  • Each REC represents the equivalent of one megawatt hour (MWh) of generated electricity from an accredited renewable energy source.
  • Under the SRES customers will receive a fixed price of $40 for every REC they produce. At the moment the price of RECs is set by the market (and is lower than $40)
  • To find out the annual RECS entitlement from a solar PV system, multiply the rated power output by the zone rating. Southern Australia is in zone 4 so our zone rating is 1.185
  • When you install a solar PV system you have the option of claiming credit upfront for the first 15 years of power generation.
  • In addition, under the solar credits scheme you are allowed to multiply the RECS you create from solar PV by five (there is no scientific reason for this - it just means you get more money)
  • Sample calculations :
    • 1 kW system : 1 x 1.185 x 15 x 5 x 40 = $3555 rebate
    • 1.5 kW system : 1.5 x 1.185 x 15 x 5 x 40 = $5332 rebate

  • Note
    • The SRES is not due to come in until 1 Jan 2011. Many in the industry are campaigning to have the start brought forward to 1 July 2010. Because customers will receive a higher rebate under the next system there is a danger that many people will wait untle next year and the industry will stagnate
    • People who install solar PV aren't really reducing Australia's emissions. The RECs will mainly be purchased by power companies who have an obligation to contribute to Australia's target of 20% renewables by 2020. The only way to ensure that your solar panels reduce Australia's emissions is to voluntarily retire your RECS. But then you don't get any money for them



"Geelong Goes Solar" Winds up unexpectedly

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Note : as of Monday 9 June 2009 the Federal Government ended the $8000 grant for households installing solar PV panels. Hence our Geelong Goes Solar bullk buy project with Solar Shop also wound up. Around 70 households committed to the bulk buy and we are proud of the contribution we helped make to Geelong's carbon footprint. There is some information on the new scheme below. Or you could contact Aaron Lewtas from Solar Shop (0402931872) to discuss your options if you missed out. 


The new solar rebate system - "solar credits"

The legislation for the new rebate system has not yet been passed through Parliament. The approximate details are as follows

  • In July 2008 the Rudd Labor Government means tested the $8000 rebate for people installing 1kW (or more) of solar PV panels so that only households earning under $100,000 were eligible
  • In late December 2008 it was announced that this system will be replaced on July 1 2009 with a system of “solar credits”. It will not be means tested and will be worth roughly :
    • $5000 for a 1kW system
    • $7500 for a 1.5 kW system
    • The government will not be paying the solar credits – they will be paid by the power companies. There is an accounting trick whereby owners of solar panels will earn five times more credits, or renewable energy certificates (RECs) than they normally would have

Feed-in Tariff

  • See side page on this. It is important you understand the implications of the feed-in tariff before purchsing a solar PV system.




 
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