House Tablet

Find The Best Solar Deals In Australia

  • 3 Free, No Obligation, Solar Quotes
  • From Fully Qualified Installers
  • With 1000’s of Customer Reviews
  • Competing for Your Business
Finn Peacock Caricature

Check Your Postcode for local solar power quotes

Solar Credits scheme withdrawn early

19th Nov 2012

The federal government has announced it will be phasing out the Solar Credits scheme earlier than intended - in what could come as a blow for the PV installation industry.

Solar Credits will now be wound down from January 1 2013, with minister for climate change and energy efficiency Greg Combet claiming it will be a boon for electricity consumers.

The politician said power bills will be reduced by between $80 and $100 million next year because of the decision.

Solar Credits offer additional support for small-scale solar PV installations by multiplying the number of certificates such systems generate under the Renewable Energy Target.

In other words, it enables people to receive assistance in covering the upfront costs of getting new installations - with industry experts claiming it is a big incentive to invest in solar power.

However, Mr Combet said demand is so strong for household solar, that the scheme can be curtailed early.

"This will lower the impact of the high uptake of solar PV on electricity costs for homes and businesses," he remarked.

"Bringing forward the phase-out of the multiplier to 1 January 2013 will help place the industry on a sustainable path and ease pressure on electricity prices."

Mr Combet said an additional benefit of withdrawing the scheme early is that it will allow solar hot water heaters to operate on a level playing field with solar PV.

This is because solar hot water wasn't included under the Solar Credits mechanism, putting it at a distinct disadvantage.

So what happens to people who have already signed an agreement under the old terms? Well, it seems they benefit from the existing legislation.

This will also be the case for those who get systems installed before the phasing out begins next year.

Data published by the minister showed 880,000 rooftop solar PV systems have been put up since the Labor government came to power in November 2007.

The reasons listed for such a surge in demand were state and territory feed-in tariff schemes, rising network prices, incentives under the RET and the high Australian dollar.

Rapid reductions in the price of solar power systems were also cited as a contributing factor.

Mr Combet implied that uptake will continue to increase regardless of the Solar Credits scheme being pulled.

"The carbon price improves the economics of household solar and this change will enhance the complementarity of the RET support with the incentive the carbon price provides," he explained.

Posted by Mike Peacock

Solar Power News Categories

Government Rebate & Regulations
Solar Power & Technology

More Solar Power & Technology

Australia to be a part of huge Asian renewable energy growth
SunPower steps up to make solar more affordable
Canberra makes strides toward carbon neutrality
GTM puts solar's massive growth in perspective
Examining Australia's falling solar PV rooftop prices
Australia's shift toward renewable energy picks up the pace
Australia shines at solar decathlon
University of Queensland tapped as lead researcher on massive solar project
100 per cent renewable energy is possible in 10 years, environmental group says
Climate Commission releases report on solar progress
Aussie government actually shows spine for solar power
Be gone, skeptics: One million solar installations and counting
Australia embarks on its greatest solar journey ever
Australia looks to solar thermal for commercial success
Solar power helps King Island reach 100% sustainability
Australians 'heavy supporters of solar power'
Mildura solar plant officially unveiled
Solar power trumps other renewables in Australian minds
Sunshine Coast solar farm "fantastic initiative"
Sunshine Coast cashes in on namesake with solar plans
Energy storage 'could maximise solar power utility'
Solar powered family car - a world first?
Code of conduct for solar installers in the works
'Stop punishing households' for solar PV
Australian solar companies 'adjusting well'
Australian mining 'next solar frontier'
"Rooftop revolution" underway across Australia
Global PV market emerging from sluggish period
Royalla solar farm receives final approval
Leadership challenge a "debacle" for Australian solar power
Solar power giving global renewables a helping hand
Australia's largest CPV solar power plant up and running
Renewable energy misinformation "staggering"
CEC: Don't underestimate consumer desire for solar
Setting energy efficient examples on TV
Solar PV brightening up household bills
World's largest solar powered boat on the move
Climate change is heating up
The global solar power shift
New solar tech win for NSW
Industry orgs praise City of Sydney solar efforts
Clean Energy Council supports Regional Renewables scheme
Asian nations emerging as PV leaders
Solar PV demand continues to grow
Regional areas of Australia to receive more renewables
Australia's significant renewable energy growth
Solar panel reprieve for Queensland
New funding for solar research
Find love with sustainable speed dating
New Victorian solar power deal