Solar Credits

Who?

The Solar Credits scheme is a federal government initiative under the Renewable Energy Target legislation. The main participants in operating the scheme are renewable energy companies like Clear Solar, electricity retailers and the Office of the Renewable Energy Regulator.

What?

The Solar Credits scheme allows householders and businesses to create five times the normal number of Renewable Energy Certificates (RECs) on the first 1.5kW of their solar power systems. The normal number of RECs can be created on the capacity of the system above 1.5kW.

How much is it worth?

The number of RECs that apply to your system depend upon its size and your postcode. More RECs can be created in sunnier areas such as Alice Springs than in Melbourne or Hobart.

The value of RECs varies with market conditions. In the early part of 2010 prices ranged between $30 and $47 per REC. Depending on your postcode and the price of RECs, the value of RECs (including Solar Credits) that can be created on a 1.5 kW system is likely to be between $4,600 and $8,000. Higher amounts apply to larger systems. Your Clear Solar Energy Consultant can tell you the value of RECs for your system.

The federal government has announced plans to fix the price of RECs created by small systems at $40 each from 1 January 2011. The legislation for this change has not yet been passed.

Are there any conditions?

You can only claim Solar Credits if you have not previously received them for an installation at the same address. You are also ineligible if any solar power system at the address has been supported by other federal government programs such as the Solar Homes and Communities Program.

How do I access it?

You simply need to sign a form assigning your RECs to Clear Solar, and we will reduce the price of your solar power system accordingly.

Who pays for it?

RECs are purchased by electricity retailers and other wholesale buyers of electricity to fulfil their obligations under the Renewable Energy Target. Ultimately, the cost of the Solar Credits Scheme is spread across all buyers of electricity.

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