Federal Government announces further RECs change
Flash Traffic: Solar credits quantity reduced by larger margin than announced previously
Solar Credits is the name given the the incentive available for capital investment in green energy production. For information on on the Feed in Tariff, see this news article and general feed in tariff information
The Minister for Climate Change and Energy Efficiency, Greg Combet, today revealed that the Solar Credits multiplier will be reduced from 5 to 3 from 1 July 2011 to 30 June 2012, with the effect being to reduce the installation incentive by 40%. The minister alleges that system prices have come down to such an extent that the incentive can be reduced, although a strong motivator is the falling price or value of the credits.
The proposed new regulations will also define transitional arrangements for eligible systems with a contract for installation from 1 July 2011 to 30 June 2012 (allows for a multiplier of four, if already signed up on that basis as at today). All other systems will get a multiplier of 3 (that is to say, for 1.5kW systems, 93 credits – current value is about $25/STC or $2325).
To see the release from the minister, visit this Solar Credits Press
