Australia’s solar industry takes another hit

December 3, 2010
Facebook
Twitter
LinkedIn
Reddit
Email

Australia's Minister for Climate Change, Greg Combet has revealed that the country's subsidies for households that install solar panels will end a year earlier than planned. The Solar Credits Scheme, originally implemented in 2008, which gives households up to five times more renewable energy credits for the electricity generated by their solar systems, will now end in mid-2014, with the credit 'multiplier' reduced every year until that date.

Solar Credits are based on Renewable Energy Certificates (RECs), and apply to the first 1.5 kW of capacity installed for grid connected solar power systems and up to the first 20kW of capacity for off-grid solar. One REC is equivalent to one megawatt hour of electricity generation; a renewable energy certificate can be traded for cash, with the value of these certificates fluctuating according to market conditions.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“The cost to install solar panels has reduced substantially since the Solar Credits mechanism was first announced in December 2008, driven by a strong economy, a high dollar and falling technology costs,” explains Combet. “The Government has always emphasised the importance of households bearing some of the cost of installing solar systems.”
  
The Minister continued to say that given the drop in price and other support such as feed in tariffs across the country, the Solar Credits multiplier will be brought forward by one year, from five to four on July 1, 2011, four to three on July 1, 2012, three to two on 1 July 2013 and two to one on July 1, 2014.

While the new regulation will reduce average rebates to households installing a 1.5kW system in Sydney, Brisbane, Perth or Adelaide from AUT$6200 to AUT$5000, the move is expected to save householders approximately AUT$12 next year by lowering the amount of high-cost power that electricity retailers are required to buy under the Government's renewable energy target.

Read Next

Premium
October 17, 2025
According to Ronak Maheshwari of CRC-IB, there has been a struggle for US renewable power projects to secure necessary equity .
October 17, 2025
Norwegian renewable energy firm Scatec has signed lease agreements for 64MW of solar PV and 10MWh of energy storage capacity in Liberia and Sierra Leone.
October 17, 2025
A group of over 20 US states are suing the Trump administration for the cancellation of the US$7 billion Solar For All Scheme.
October 16, 2025
Masdar and Turkey have entered the final stage of US$1 billion agreement to develop the 1.1GW plant in Bor, Niğde Province, central Turkey.
October 16, 2025
T1 Energy and Nextracker have agreed to use the latter’s steel module frames at the former’s new 5GW module manufacturing facility in Dallas.
October 16, 2025
US utility-scale solar additions grew by 56% in 2024, reaching 30GW from 2023’s 19GW and representing over 54% of all new electricity generation capacity added in the country last year.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK