Renewable Energy Target Under Review – Impact On Solar?
The Federal Government is currently reviewing the Renewable Energy Target (RET). This target aims to provide 20 percent of electricity supply sourced via renewable energy sources that include solar and wind power by the year 2020. The solar industry is watching this with considerable interest as the RET has been a significant driver of solar installation around Australia for the last few years. Integral to the renewable Energy target was the Small-scale Renewable Energy Scheme (SRES) which basically allows owners of solar systems to sell their small-scale technology certificates (STC’s) which are tradable certificates and their value is based on the amount of electricity that the solar system will produce in its lifetime (more details at https://ret.cleanenergyregulator.gov.au/Solar-Panels/Incentives-for-your-Solar-Panels/incentives-solar-panels). On a practical level, when you decide to get a solar panels system for your home the cost of the system is effectively subsidised by the credit you gain from the STC’s that your system generates. As a solar installer in Canberra, we do all the paper work for you and you do not need to be concerned with the detail of trading the STC’s. You simply get your solar system installed at a price lower than if this scheme were not in place.
Solar Industry Concerns
The solar industry is watching the review of the RET with some trepidation. If the RET is scrapped it is possible that the SRES could also go. If this were to happen then this would mean that the cost to install solar power systems would increase. Australia has been extremely active in embracing solar technology and the industry has grown to become a worthwhile part of the Australian economy. We will continue to monitor this review and update readers.
A.C.T. Community Solar Feed In Tariff (FiT)
We read with interest that the A.C.T. government has announced a very interesting community based solar feed in scheme. The scheme allows for members of the community to pool their resources to establish large scale solar power plants that will qualify for a 20 cent per kilowatt hour feed in tariff. This feed in tariff would be payable for 20 years. A feed in tariff is simply the money that the government will pay for electricity that a solar system produces that is ‘fed’ back onto the electricity grid.
This scheme is very interesting in its concept.It means that groups can potentially pool their resources to finance the establishment of significant sized solar systems that will qualify for payment of the electricity the system produces. It could potentially provide a way for small investors to get a reasonable return on an environmentally friendly investment. Again, we will further follow this development with interest and update readers. Further details here.