Australia Leads The World In Home Solar Incentives
Something like this should be done in the United States. But it will not. Big oil has too much money and can buy too many votes. They block legislation like this in the U.S. The U.S. who invested solar panels and started the solar power industry continues to fall further and further behind the rest of the world.
But I digress. This article is about new legislation in Australia that gives a big boost to the home solar industry there.
The Senate in Australia passed the Renewable Energy Target (RET) bill which gives $7,000 to anyone who installs at least a 9 panel (1.5kW) solar energy system.
This was originally one bill that had a RET portion and a ETS portion. When it became clear that the fighting over the ETS portion was going to delay its passage, the Coalition and business and green lobby groups pressured the Senate to split the RET and the ETS portions of this bill into two separate bills. The Senate agreed and the RET portion passed.
The home solar discount is available for all grid connected buildings, whether principal place of residence, rental, holiday home, commercial premises or rural construction. The scheme has no means test; the rebate threshold of a household taxable income of $100,000 has been abolished.
Specifically, the home solar discount works by giving a value of 500 percent the market value of RECs or what are called Renewable Energy Certificates.
Renewable Energy Certificates (RECs) began in Australia in late 2001. RECs purpose is to put a value on the displacement of greenhouse gases. One REC is equal to one mega Watt hour of electricity produced. RECs give financial incentives to engage in less burning of fossil fuel.
Depending on your latitude and how many sunshine hours you receive, there are usually 31 RECs attached to a 1.5kW solar energy installation. The value of a REC is subject to market variation, and they are currently trading at approx $35. This equates to $1,085 value in RECs for a 1kW installation. Under Solar Credits, this figure is multiplied by five, to give a total discount of $5,425.
The first 1.5kW of solar panels installed get the discount. For higher output solar panel installs, the usually 1:1 rate of Renewable Energy Certificates applies. The ORER (Office Of Renewable Energy Regulator) will issue the discounts. People having solar panels installed can decide if they want to use the Renewable Energy Certificates to pay the solar power installer in order to lower upfront costs, or they can hold on to their certificates like a stock with the idea of selling it in the future when they increase in value.
This could be done in the United States if it were not for big oil and big energy corporations paying off congressmen to block and delay development in the solar power industry.
Written by Sam Stoker. To learn more about how to install your own solar power and wind power generators please visit home solar
