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Solar Power Credit Scheme Australia Guide – Understanding Solar Energy Multipliers,STC,SGU and REC

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State governments in Australia have been at the forefront of giving rebates and subsidies to promote solar energy in the country.This has resulted in a large boom of solar installations among residents in the country who are taking advantage of the generous subsidies.Though recently a number of provinces like New South Vales and Victoria have stopped the solar rebates , the falling cost of solar panels in Australia has still made it attractive enough for people to put up solar panels.Now the rebates for solar energy is federal in nature where you can receive a Renewable Energy Certificate (REC) or Solar Credit for the solar energy generated from solar panels

Read about on how to buy Solar Panels

Solar Power Credit Scheme

What are Solar Credits?

The Australian Government is supporting the deployment of renewable energy in Australia’s electricity supply through the Renewable Energy Target (RET) scheme. The RET guarantees a market for additional renewable energy generation, using a mechanism of tradeable renewable energy certificates.Solar Credits is a mechanism within the RET scheme that provides additional support to households, businesses and community groups that install small-scale solar PV, wind and hydro electricity systems by multiplying the number of RECs able to be created for eligible installations.

What is  Small-scale Technology Certificate (STC)

Small-scale technology certificates (STCs) are created by eligible installations of solar water heaters, air source heat pump water heaters and small generation units (small-scale solar photovoltaic panels, wind and hydro electricity systems). A STC is generally equivalent to:

  • 1 MWh of renewable electricity deemed to be generated by small generation units unless the Solar Credits REC multiplier applies; or
  • 1 MWh of electricity deemed to be displaced by the installation of solar water heaters

What’s an SGU?

A small generation unit (SGU) is classified as a small-scale solar photovoltaic (PV) panel, wind or hydro unit.

What are Solar Multipliers

As the costs of small solar systems are higher,the government gives a solar multiplier to solar REC being generated by small system providers.This multiplier is reduced with each passing year as the solar panels costs go down.Read about how to buy solar panels in Australia.he Solar Credits multiplier applies to the first 1.5 kilowatts (kW) of capacity of the system installed for systems connected to a main electricity grid and up to the first 20 kW of capacity for off-grid systems.

How are Solar Credits Obtained and SoldUse of System Provider

While system owners can create and sell the certificates themselves, in practice, providers of solar PV systems usually offer a discount on the price of a solar PV system, or a cash payment, in return for the right to create and sell the Solar Credits.

How much Money do you get from Solar Credits

Solar Credits are provided in the form of STCs, for people who have installed  a new and eligible solar PV system (or other small generation unit). The level of support provided by Solar Credits depends on the location and size of the system and the price of STCs. The STCs are able to be traded at $40 through a voluntary clearing house established by the ORER under the new Small-scale Renewable Energy Scheme. Alternatively they can be sold on the STC market, usually for a lower price.

Why do Solar Credits vary across cities like Sydney, Perth and Hobart

Each place receives a different amount of sunlight so places with more sunshine receives less STCs while places with lower amount of solar radiation get more.

  • A solar PV system in Zone 3 for which includes Sydney, Perth, Adelaide, Brisbane and Canberra will create the same number of STCs and potentially receive a similar level of support.
  • The same sized system installed in Zone 4 which includes Melbourne or Hobart will receive fewer STCs as these areas have less sunshine so less renewable energy is produced.

Solar Multiplies in 2011,2012 and 2013

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

For systems installed from 1 July 2011 to 30 June 2012, the multiplier is reduced to three and reduces by one each financial year until the standard rate of STC creation (a multiplier of one) applies for systems installed from 1 July 2013.

How to apply for Solar Credits – Using a Solar Contractor

Generally when installing solar PV systems, owners transfer the right to create STCs to their solar panel supplier in return for a discount on the price of the system being installed.  Owners can do this directly or through an agent by applying to the Office of the Renewable Energy Regulator (ORER) any time within 12 months following the date of installation.

Conditions for Getting Solar Credits

  1. The system must be an eligible ‘small generation unit’; being a solar PV system of up to 100 kilowatts (kW) capacity
  2. The system must be installed at an eligible premises. Examples include houses, townhouses, residential apartments and shops.
  3. The system must be a new and complete unit.
  4. No more than one system at an eligible premises (address) is entitled to Solar Credits.
  5. Solar Credits may only be created once for a particular installation, irrespective of whether the certificates are created for a 1-year, 5-year or 15 year deeming period.

Money recieved by typical 1.5kW solar panel system installed across Australia up until 30 June 2012

City Approximate maximum level of support
5x Solar Credits multiplier (systems installed up to 30 June 2011) 4x Solar Credits multiplier available under transitional arrangements for pre 5 May 2011 contracts (systems installed from 1 July 2011 to 30 June 2012) 3x Solar Credits multiplier (systems installed from 1 July 2011 to 30 June 2012)
Adelaide $6,200 (155 STCs) $4,960 (124 STCs) $3,720 (93 STCs)
Brisbane $6,200 (155 STCs) $4,960 (124 STCs) $3,720 (93 STCs)
Canberra $6,200 (155 STCs) $4,960 (124 STCs) $3,720 (93 STCs)
Darwin $6,880 (172 STCs) $5,520 (138 STCs)   $4,120 (103 STCs)
Hobart $5,320 (133 STCs) $4,240 (106 STCs) $3,160 (79 STCs)
Melbourne $5,320 (133 STCs) $4,240 (106 STCs) $3,160 (79 STCs)
Perth $6,200 (155 STCs) $4,960 (124 STCs) $3,720 (93 STCs)
Sydney $6,200 (155 STCs) $4,960 (124 STCs) $3,720 (93 STCs)
PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in

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