The Australian Government supports 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 (RECs).

Solar Credits is a mechanism within this scheme that provides additional support to households, businesses and community groups that install small-scale solar PV electricity systems by multiplying the number of RECs able to be created for eligible installations. More RECs equates to a larger rebate.

Each solar power system installed essentially earns a quantity of RECs, and these are typically credited against the upfront purchase price of a new system reducing the cost.

For systems installed from 1 July 2011 to 30 June 2012, the Solar Credits multiplier is three, and the government expects this to reduce by a factor of one each financial year until the standard rate of RECs creation (a multiplier of one) applies for systems installed from 1 July 2013.

The Governments aim is to reduce support of the Solar Credits scheme over time, reflecting reductions in technology costs. Solar electricity is eventually expected to be at paritiy with conventional fossil fuel generated electricity costs without any reliance on rebates.

The next proposed rebate drop is expected from June 30, 2012. However the Federal Goverment has a history of changing solar rebate policy at short notice. In mid 2011, the multiplier was unexpectedly reduced by a factor of 2, from 5x to 3x - and a month earlier than expected.

So what's the bottom line? Those thinking of going solar, should do so now to maximise their solar rebate & obtain the best price. Systems will need to be installed by June 30 at the very least, possibly earlier if the government chooses to reduce the rebate earlier. Installation lead times for most providers mean that orders will need to placed well before these dates.

Learn more about solar power and solar specials.

IPART - the Independent Pricing and Regulatory Tribunal have just released their draft report on changes to regulated electricity prices.

The report forecasts an average 16.4% increase in NSW electricity prices as of July 1 2012. This has been reflected in recent media activity with most other states prediciting similar annual increases.

The predominant drivers were Network costs, Retailer costs & Carbon pricing. Their report also acknowledges the pressure these increases place on households - "IPART recognises that the percentage rise in average electricity bills is likely to outstrip the percentage rise in average household income and therefore many households will spend an increasing proportion of their income on electricity bills, particularly those in low income, high consumption households. IPART strongly supports measures that will help to limit electricity prices increases while maintaining the viability of the electricity retail industry."

Interestingly Green Scheme's which encompass various wind & solar programs were shown to have little or no impact on electricity rises (see "Green Schemes" on graphic above). In fact electricity generation costs had dropped by 2% which some commentators attribute to the "merit order effect" from the growing volume of solar installations which are starting to influence lower wholesale electricity costs.

Learn more about eliminating your power bill with solar and how solar is now more afforable than ever.

The gap between traditional fossil fuel and renewable energy continues to close. We hear about rising electricity prices in the news almost daily. It's been shown that a majority of these increases are a result of aging network infrastructure and the need for energy retailers to recoup upgrade costs. A smaller portion can also be attributed to existing renewable energy schemes and the forthcoming Carbon Tax. Either way, it's clear that traditional electricity costs are only heading in one direction - up. In contrast renewable energy costs are also heading in one direction - down. This means the parity gap between fossil fuel generated power and that generated from clean energy sources such as solar are closing. The cost per watt to manufacture solar panels for instance, has dropped dramatically over the last 5-10 years, and will continue to do so as panel efficiency and mass production increase. Depending on where you live, the cost to power your home with solar energy may already be comparable (or less) than electricity purchased via a traditional retailer. Solar Shop Australia are now making the switch to solar power even more attractive with some great offers on their premium panels. Pricing on selected Japanese Solar Frontier & Kaneka systems have almost halved in some cases. These premium systems offer increased heat and shade tolerance over traditional technologies (e.g. better energy yield) and their sleek dark glass panels look great on any roof. If you're tired of paying high electricity bills, now is a great time to switch to solar, end high power bills forever, and do something nice for the environment too! Click here to learn more about Solar Frontier & Kaneka.

Here's a great article from the Australian Financial Review .."The Proof is in the heating - solar's shinning success story". Professor Martin Green from the University of NSW explains how solar is making a significant contribution to the grid in Germany - the early adopters of solar - and how that translates to the growing Australian solar industry. Click the link above to download the PDF article.

 With another hot summer upon us - here's some useful energy saving tips to keep your cool -

Commercial and residential solar energy provider, Premier Solar group of companies, has become one of Australia's largest installers of solar PV systems following the recent acquisition of Solar Shop Australia's business and assets from appointed receivers, Ferrier Hodgson.

Included in the acquisition was Solar Shop Australia's commercial arm, Commsolar, as well as Australia's only solar specific finance organisation, Solar Financial Solutions, making Premier Solar one of the strongest and most diverse solar businesses in the nation.

Premier Solar Group Director, Daniel Cobb, said the organisation was proud to have added one of the country's most recognised solar organisations and its people to its group of companies.

"Solar Shop Australia has been at the forefront of the solar industry for more than a decade, providing thousands of households and businesses with tailor made solar solutions and introducing many of the top solar panels to the Australian market," Mr Cobb said.

"Despite facing challenging times in recent months, Solar Shop Australia remains one of the country's largest solar providers, with an extensive national network.

"We don't shy away from the fact that it's been a difficult time for our staff and customers, but rest assured our dedicated team are working around the clock to honour its commitments to existing customers and have put a lot of energy into refining our business operations moving forward."

Mr Cobb said Premier Solar had been built on the principle of sustainable growth.

"We recognise the long-term potential of clean, green energy in Australia and understand the extensive opportunities that the industry presents," he said.

"There will always be a place for residential solar, however bringing Solar Shop and its associated businesses into our group positions us for the market shift towards larger scale commercial solar and clean energy power generation, including solar farms."

Solar Shop Australia General Manager, Kevin Whelan, said joining Premier Solar was the dawn of a new era for Solar Shop Australia.

"We are proud to be on board with Premier Solar, which has not only established itself as a savvy and innovative player in the national solar market, but also shares the same values and passion for quality products and customer service as Solar Shop," Mr Whelan said.

"Premier Solar has already demonstrated its strong belief in Solar Shop Australia with its decision to maintain the brand, retain the skills and expertise within Solar Shop's team and by keeping the core of the business firmly based in South Australia.

"The combination of Solar Shop's unparalleled solar expertise and national network, with Premier Solar's broad-based and sustainable business structure, places us in a strong position for growth in this rapidly changing market.

"We are not here to just survive within Australia's exciting clean energy future, we have every intention to thrive."

Premier Solar remains committed to helping the Australian community achieve the 20 per cent renewable energy target by 2020.

For further information please download our FAQ document here.

WA State Government scheme designed to help residents recover the purchase cost of their renewable energy system has been suspended after reaching its quota.

Energy Minister Peter Collier said the scheme's popularity had led to the installation quota being reached quickly and it will now be suspended.

"The feed-in tariff scheme has been a great success - under the scheme, more than 65,000 homes will be generating their own renewable electricity which will add an extra 150 megawatts of renewable energy capacity to the grid," Mr Collier said.

"This quota has now been reached and it will be suspended from today (Aug 1, 2011) - applications already received or postmarked before today will be accepted, but there will be no more applications processed until further notice."

Feed-in tariff payments will continue for those residents already on the scheme for the remainder of their 10-year subsidy payment period. Synergy and Horizon Power will also continue buying excess electricity fed into the grid from all residential renewable systems under the State Government's Renewable Energy Buyback Scheme.

Mr Collier said that, despite the suspension, people would still be able to pay off their systems well within the 10 years, as was the schemes original intention.

"Wholesale prices of renewable energy systems have halved in the past 12 months which has resulted in greater affordability and means customers will be able to recover the purchase cost of their systems much quicker," the Minister said.

For more information on the suspension of the scheme, please visit the Office of Energy website http://www.energy.wa.gov.au/

Home owners in the ACT can once again take advantage of the Territory government’s Feed-in Tariff scheme, with households now eligible for 30.16 cents per kilowatt hour for their generated power, on the medium-scale scheme that was originally intended for solar farms, commercial-scale installations, and community group projects.

The closure of the ‘micro-generator’ scheme in June, for new systems 30kW and under, was met with disappointment amongst the public and the solar industry. The united voices of a group of ACT-based solar companies, including Solar Shop Australia, the nation’s number one supplier of grid-connected solar, helped to turn the tide.

In the lead-up to the Rally for Solar in Canberra on June 21, Andrew Towndrow, our Manager in the Territory, said that “The Solar industry welcomes any alternative to closing access to the system, whether that be a lower tariff rate (34 cents) with regular reduction over time, allowing the industry to stand on its own two feet”.

Members of the Greens and Liberals Party banded together in the ACT Parliament to push the necessary changes through, delivering a practical solution for the problem of how to support the solar industry through a time of flux.

But critics warn that this temporary solution may hinder the approval of medium-scale projects, and point out that it will only delay the inevitable slow-down that will come after the medium-scale scheme hits its own 15-megawatt cap.

“This should be a wake up call to Federal, State and Territory Governments to develop a longer term strategy that does away with boom-bust industry," Andrew Towndrow said.

"They need to provide an ongoing sustainable incentive for the average Australian household to adopt renewable energy while eliminating the pass through cost burden on the remainder of the society and tax payers.”

The message for ACT households (and those planning commercial projects) is clear: now is a good time to take action.

Book a free home consultation with one of Solar Shop Australia’s Renewable Energy Advisors today, and check out our current special offers for great solar system deals, available with with $0 deposit finance.

Greg Combet, The Minister for Climate Change, announced amendments to Solar Credits on Thursday 5th May 2011. Under the amendments, the Federal Government will reduce their support for household solar by reducing the Solar Credits multiplier from five times to three times for products installed from 1 July 2011.

According to Mr. Combet, this change is in response to strong growth in the solar industry and the impact of that growth on electricity prices.

The reduction of the Solar Credits multiplier to three times instead of four times (as announced in December 2010) accelerates the phase-out of the Solar Credits scheme. The new Solar Credits multiplier will still provide households with upfront support equivalent to about a third of out-of-pocket expenses for a typical 1.5kW system.

Solar Shop Australia remains confident
about the industry's future  

Australia’s largest solar power provider, Solar Shop Australia, says today’s Federal Government announcement to reduce the solar credits multiplier should not sway consumers from switching to solar energy.   

Solar Shop Australia’s General Manager of Retail, Daniel Edgecombe, said the move to effectively reduce the upfront solar energy rebates follows significant uptake of solar energy and that momentum was expected to continue.  

“Solar Shop Australia has been in the industry for more than 12 years, and the Federal Government’s support over the past few years has led to unprecedented industry growth, including the entry of a few smaller players into the market place,” said Mr Edgecombe.

“While the out-of-pocket expenses for customers will increase faster than anticipated as a result of this change, solar energy continues to be the best solution to manage families’ energy costs, as electricity bills will continue to rise as electricity infrastructure is finally updated and network capacity is increased.  

“Solar energy is a sustainable choice and a pure source of energy that will continue to deliver financial benefits to Australian families for many years to come. “ 

However, Mr Edgecombe emphasised a couple of issues that remain unaddressed.  

“The Government announcement assumes the value of Small-scale Technology Certificates (STC) to be $40, but as it stands the market value of STCs is under $30 from the trading houses,” he said. 

“Another issue is the need for a nationally consistent feed-in tariff for sending excess energy back into the grid. Responsible households who return solar-generated energy to the grid should receive a regulated minimum payment per kWh from electricity providers.  

Solar Shop Australia's advice to customers:

• While this change will increase the upfront cost, the installation a solar PV system is still a great way for Australian's to reduce their power bill and is a worthwhile investment in future power needs.

• It's more important than ever to install a quality system, designed by experts, and comprised of quality brand-name panels and an inverter from a reputable manufacturer.

• Solar Shop Australia customers who have signed a contract and a paid a deposit prior to May 5th 2011 at the four times multiplier rate will have this multiplier applied.
• Solar Shop Australia encourages customers to learn about Sunworks, our solar finance product. Sunworks allows customers to pay for their solar system as they go with $0 upfront cost.

About Solar Credits and Small Technology Certificates

• Solar Credits is a mechanism that provides additional support to households, businesses and community groups that install small-scale solar photovoltaics (PV or solar panels), wind and hydro electricity systems by multiplying the number of small-scale technology certificates (STCs) able to be created for eligible installations.
• These extra STCs only apply to the first 1.5kW of system capacity. So if your system is larger than 1.5kW, you will receive Solar Credits plus an additional STC for every one megawatt hour of electricity able to be generated by your solar power system.
• Small Technology Certificates (STCs), formerly known as Renewable Energy Certificates (RECs) are an electronic form of currency created by the Renewable Energy (Electricity) Act 2000. One STC is equivalent to one megawatt hour of electricity generated by your solar PV power system. The price of STCs changes according to market conditions. As an owner of a solar PV power system, you can register, sell, trade or surrender STCs for systems up to 100kW.
• The level of subsidy will depend on a number of factors, including the location (also known as the zone) of the solar PV system, the size of the system and the price of STCs at the time the system was installed.