The future development of Australia’s renewable energy future is currently being encouraged by a number of government initiatives. It’s a great time to be investing in solar. It’s worth considering that some of these initiatives are subject to the vagaries of our political system and they may not be available in the future.
Solar Power Development Incentives
- Amendments to the renewable energy target which mandate 20% of electricity is to be supplied by renewable energy by 2020;
- Environmental provisions of the Economic Stimulus Package (specifically the Energy Efficient Homes Package to improve insulation and install solar hot water systems in existing houses);
- Interest-free Green Loans;
- Solar Flagships Program;
- Renewable Energy Development Fund; and
- Renewable Remote Power Generation Program.
Additional state government initiatives include rebates for the installation of solar panels, and the provision of feed-in tariffs to assist the growth of renewable energies and energy savings.
Take advantage of the generous government incentives and rebates when buying your Solar Panel System. There are two types of rebates offered that you can take advantage of when purchasing a Solar Power System in Brisbane:
- Renewable Energy Certificates (REC) Trading Rebate
- Feed-in Tariffs
REC Trading Rebate
This was initiated by the Renewable Energy (Electricity) Act, 2000. RECs are available when you buy ‘qualifying’ solar panels. You receive cash back on your purchases by selling the RECs, or using them as a ‘point of sale’ discount from Juno Energy.
One REC is equivalent to one megawatt hour of electricity generation.
A renewable energy certificate can be traded for cash, and the value of these certificates fluctuates according to market conditions. Basically, a REC is a form of renewable energy currency and you can sell your RECs or use the money as a point of sale discount on solar power system items you buy!
In the simplest terms, the REC is like getting an ‘upfront’ discount when you are buying a house. Think of it as something like the First Home Owners grant. This grant is called the REC trading rebate. The way it works is: that you can save (depending on where you live) a substantial amount of the cost on your initial capital outlay, just like participants in the first home buyers grant scheme were encouraged to invest in house by the handy upfront cash injection from the grant. REC’s are like a ‘ first solar system’ grant… and that is actually quite accurate, because you can only get this grant once ( just like a first home buyers grant). In some cases this can be as much as $4,500-$5,500. One of the quirks of the way that this discount has been structured means that you get the biggest rebate for a 1.5 kw system.
Here are some examples of possible discounts:
- For a 1.5 kw you might get a discount of $4,500
- For a 2 kw you might get a discount of $5,000
- For a 2.5 kw you might get a discount of $5,500
Feed – In Tariffs
More information is coming soon.