The Renewable Energy Target (RET) scheme, funded by the Australian Government, will help ensure that the equivalent of at least 20 per cent of Australia's electricity supply comes from renewable sources by 2020.
The RET uses a mechanism of tradeable renewable energy certificates (now called STC) which are created by eligible sources of renewable energy. Generally, greater STCs are earned by the more efficient products, top ranking products as they are most efficient in producing energy.
From 1 January 2011 the Renewable Energy Target will be split into the Large-scale Renewable Energy Target (LRET) and Small-scale Renewable Energy Scheme (SRES). The following information applies to administration of the SRES on or after this date.
- The Large-scale Renewable Energy Target (LRET), which supports renewable energy systems like wind farms, and commercial solar and geothermal power stations; and
- The Small-scale Renewable Energy Scheme (SRES), which provides support for installations of small renewable energy systems such as rooftop solar panels and solar water heaters. This is the scheme that benefits homeowners and households
Rebates: Solar Power
As of 1 January 2011 Small-scale Technology Certificates (STCs) are replacing Renewable Energy Certificates (RECs) for all eligible Small-scale Generation Units. All validated RECs existing at 1 January 2011, or certificates created for installations completed prior to 1 January 2011, will become Large-scale Generation Certificates (LGCs), which must be traded on the LGC market.
Small-scale technology certificates (STCs)
STCs are created by eligible installations of small generation units such as small-scale solar photovoltaic panels, wind and hydro electricity systems.
An STC is generally equivalent to: 1 MWh of renewable electricity deemed to be generated by small generation units unless the Solar Credits multiplier applies;
STCs can be:
- Assigned to a registered agent (usually a retailer/installer) in exchange for a financial benefit such as a delayed cash payment or upfront discount; or
- Sold in the stc market or through the STC Clearing House.
STCs are surrendered:
- Quarterly to demonstrate liability compliance against the requirements of the SRES;
- Voluntarily for any reason throughout the year; or
- For non-compliance (such as under the relevant enforceable undertaking sections of the of the Act) throughout the year.
For simplicity, Access Water & Energy refers to STC/REC benefits as part of the solar power government rebates available, included in your quotes.
Solar Credits
Solar Credits apply to the first 1.5 kilowatts (kW) of capacity installed for systems connected to a main electricity grid and up to the first 20 kW of capacity for off-grid systems.
Solar Credits work by multiplying the number of small-scale technology certificates (STCs), that systems are eligible to create. The value of STCs received via Solar Credits will be determined by the date the system is installed.
The current multiplier for eligible system installations done prior to July 1 2011 is five. The Solar Credits multiplier reduces over time, reflecting reductions in technology costs.
Recently announced changes: The Government will reduce the Credits multiplier which will apply from 1 July 2011, and will reduce each financial year until there is no multiplication. The schedule of multipliers which determines additional STCs is outlined below:
Date installed |
9 June 2009 – 30 June 2011 |
1 July 2011 - 30 June 2012 |
1 July 2012 - 30 June 2013 |
From 1 July 2013 onwards |
Multiplier |
5 |
3 |
2 |
No multiplier (1) |
Rebates: Solar Hot Water System
A number of State and federal government rebates are available to Australian residents, so check your eligibility for rebates using the table below as a guide.
- Victorian Government Rebate
- Australian Government Rebate
- Renewable Energy Certificates (RECs)
- Victorian Energy Efficiency Certificates (VEECs)
Installation situation |
1 |
2 |
3 |
4 |
For private homes
(owner-occupied or permanently tenanted) |
|
|
|
|
Replacing a natural gas or LPG water heater with a gas-boosted solar system |
Yes |
No |
Yes |
Yes |
Adding a solar water heater to an existing natural gas or LPG water heater, as a preheater |
Yes |
No |
No |
Yes |
Adding solar panels to an existing off-peak electric water heater either with a pump or by thermosiphon as a retrofit kit |
Yes |
No |
No |
Yes |
Replacing an existing solar, wood, briquette or oil fuelled water heater with gas-boosted or electric solar system. Must be natural gas boosted if available in the street. Existing LPG boosted solar water heaters can only be replaced with gas boosted systems. |
Yes |
No |
Yes |
No |
Replacing an electric water heater with gas-boosted or electric solar system (if natural gas is not available in the street) where the applicant has installed ceiling insulation under the Australian Government's Home Insulation Program. |
Yes |
No |
Yes |
Yes |
Replacing an electric water heater with gas-boosted or electric solar system where applicant has not installed ceiling insulation under the Australian Government's Home Insulation Program |
No |
Yes* |
Yes |
Yes |
New homes and buildings installing a gas-boosted or electric solar system |
No |
No |
Yes |
No |
For commercial buildings |
|
|
|
|
New or existing buildings installing a solar water heater |
No |
No |
Yes |
No |
|
