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Solar Credits

The new Solar Credits program will commence on July 1 2009 and will replace the current Solar Homes and Communities Plan.

The Solar Credits system will work by allowing owners of solar panels to earn five times the current level of Renewable Energy Certificates (RECs) for each mega-watt hour (e.g. 1000 kWh) of electricity produced by their solar PV panels.

As RECs can be assigned to solar equipment suppliers, the value of the certificates can be offered as a point of sale discount of up to $7,500 for purchasers of solar PV systems.

Minister for the Environment Peter Garrett stated the solar credits multiplier will be provided for new micro-generation systems up to 1.5 kilowatts during 2009/10 and would phase down from then to 2015/16.

Other important elements of the Solar Credits program include:

• The credits will represent the equivalent of up to $7,500 in price reductions on a 1.5 kilowatt solar power system.

• The Solar Credits program will not be means tested.

• It will be open to everybody - home owners, small businesses and community groups.

• The scheme applies up to a level of 1.5 kilowatt hours rated systems. Householders, businesses and community groups will be able to install larger systems, but the credits will only apply to the first 1.5 kilowatts.

• The Solar Credits program will also apply to wind power and micro hydro systems.

The Examiner Newspaper March 26th 2009.

 

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