Solar Rebates and Incentives
There are currently two ways to save money with a Solar PV System - Solar Credits (using Renewable Energy Certificates or RECs) and the Solar Bonus Scheme (Feed-in tarriff).
On 26 February 2010, the Government announced changes to be made to the RET scheme (Renewable Energy Target) to provide greater certainty for households, large-scale renewable energy projects and installers of small-scale renewable energy systems like solar panels and solar water heaters.
From January 2011, the existing RET scheme will be separated into two parts – the Small‑scale Renewable Energy Scheme (SRES) and the Large‑scale Renewable Energy Target (LRET). Combined, the new LRET and SRES are expected to deliver more renewable energy than the existing 45,000 gigawatt-hour target in 2020.
Support for households installing renewable energy systems
The SRES has been designed to assist households, small business and community groups with installation of eligible renewable energy systems. The SRES will work in conjunction with the existing Solar Credits mechanism, which boosts support for small generation units such as solar panels.
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 known as RECs (backed by a legislative obligation).
Solar Credits is a mechanism within the RET scheme that boosts 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.
MPA will work our your entitlements for RECs and give you an upfront discount off the price of your solar system installation. We also take care of all the paperwork for you.
Solar Bonus Scheme
The Queensland Government Solar Bonus Scheme (the Scheme) pays eligible households and other small customers for the surplus electricity generated from solar photovoltaic (PV) panel systems, which is exported to the Queensland electricity grid. The Scheme is designed to make solar power more affordable for Queenslanders, stimulate the solar power industry and encourage energy efficiency.
The Scheme rewards customers whenever they generate more electricity than they are using - not just the balance at the end of the quarter, but whenever generation exceeds consumption during the day.
The Scheme commenced on 1 July 2008 and is designed to boost the state's use of renewable energy, encourage energy efficiency and stimulate the solar power industry in Queensland.
Customers wishing to reap the benefits of the Scheme will need a solar PV system installed on their premises and have it connected to the electricity grid. Eligible customers will have the option to join the Scheme when the system is installed.
How much are Solar Bonus customers paid?
Customers participating in the Scheme will be paid 44 cents per kilowatt hour (kWh) for surplus electricity fed into the grid—more than double the current general domestic use tariff of 21.35c/kWh (Tariff 11 inc GST as at 1 July 2010).
The average customer operating a 1.5 kilowatt (kW) solar system could save over $400 per year on their electricity bill just by using less electricity from the grid. Solar Bonus Scheme customers also receive payments for exporting excess electricity back to the grid, meaning that these savings could be higher.
The amount of electricity a customer returns to the grid will depend on how much energy is being consumed while the solar panels are generating power. Customers may be able to maximise their solar bonus by improving the energy efficiency of their home to export more electricity to the grid. This could be achieved by reducing standby power consumption, shifting some tasks to the evening and minimising the use of air-conditioners.
The customer's grid-connected electricity consumption will also be lower (than without a solar system) as a result of the household or business consuming a portion of its electricity directly from the solar system.
Who is eligible to receive the Solar Bonus?
To be eligible to receive the Solar Bonus, customers must:
- consume less than 100 megawatt hours (MWh) of electricity a year (the average household uses approximately 7.9MWh a year)
- purchase and install a new solar PV (photovoltaic) system (solar power system not solar hot water system) or operate an existing PV system (solar power system) that is connected to the Queensland electricity grid
- generate surplus electricity that is fed into the Queensland electricity grid
- have an agreement in place with their electricity distributor (Ergon Energy, ENERGEX or Country Energy) and have appropriate metering installed
- have solar PV systems with a capacity of up to 10kVA for single phase power and 30kVA for three-phase power
- hold an electricity account with an electricity retailer.
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