Thinking of installing solar panels for cheap electricity? Not sure about the government rebate scheme? Finally found the government website but found it confusing? You are not alone!! In this blog I attempt to simplify the government Renewable Energy Scheme.
- The Renewable Energy Scheme is actually called the Renewable Energy Target by the Australian government.
- The Renewable Energy Target (scheme) is designed to reduce greenhouse gasses and to generate more electricity from renewable/sustainable sources.
- It works by “certificates” being created for every megawatt of energy that is created.
- When purchasing a solar panel system for your house you create certificates under the Small-scale Renewable Energy Scheme (SRES). This is for for systems under 100 kW. They are termed Small Scale Technology Certificates (STC’s).
- You can calculate the number of small-scale technology certificates a system may be eligible by clicking here.
- The certificates are provided “up front” (i.e. prior to your unit generating any electricity). The certificates are calculated by averaging the expected electricity generation over a period of 15 years.
- When purchasing the solar panel system therefore, it comes with a certain amount of certificates (which of course have a dollar value).
- When you purchase the solar system you can then exchange the certificates for a lower price solar system. You can also exchange the certificates for cash via a buyer, but this is complicated!
- The dollar value of Small Scale Technology Certificates varies according to market conditions. The subsidy you receive also varies according to where you live, what price the Small scale Technology Certificates were at the time of purchasing the system and how much energy the system will generate.
The government has made it a legal obligation that electricity companies must buy a certain amount of Renewable Energy Certificates each year.