Still Few Home Solar Incentives In America
The United States does not have a home solar incentive near as good as Australia. For the last 8 years, Republicans have blocked solar incentives at the request of big oil. It is sad that the United States is who invented solar panels and yet we have lost our first advantage and continue to fall further behind the world.
But this is not a negative story about big oil in America or Republicanism but instead the great news for the home solar industry in Australia.
The Australian Senate passed the Renewable Energy Target (RET) bill, which includes legislation for the Solar Credit discounts of up to $7,000 for anyone looking to install a 1.5kW (9 panel) solar energy system. Yes, you read that right, a whopping $7,000!
The Coalition and business and green lobby groups pressured the Australian government to split the RET portion of the bill from the disputed Emissions Trading (ETS) bill. Previously they had both been one bill but as the fighting heated up over the ETS bill, it was clear that it was better to split the RET and the ETS into two separate bills and so that the RET portion of the bill could be passed.
The $7,000 home solar discount is for all grid connected structures. It can be an owner occupied home, a renter occupied home, a vacation home, or even commercial buildings. The rebate threshold in earlier home solar discount programs of a taxable income of $100,000 has been eliminated.
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.
RECs or Renewable Energy Certificates were introduced in Australia at the end of 2001. Renewable Energy Certificates are what places a measurable value on the displacement of greenhouse gases. A single Renewable Energy Certificate is the equivalent of 1 mega Watt hour of electricity produced. This, in turn, is equal to about one ton of prevented greenhouse emissions. Renewable Energy Certificates provide a financial incentive to burn less 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.
Home solar credits will be applied to the first 1.5kW of solar panels installed. If a solar power system is over 1.5Kw, then customers will receive the normal 1:1 rate of Renewable Energy Certificates. Home solar credits are issued by the Office of Renewable Energy Regulator. Customers can choose whether to use the discount upfront to lower the cost of the solar energy installation or hold on to them like a stock in hopes of rising in value.
Now why can not something like this be done in the United States of America were solar panels were first invented. I guess in America it is all about money and the big oil and energy companies do not want you producing your own energy, even if it is better for the environment. They would rather destroy all life on the planet rather than lose you as a paying energy customer.
Written by Sam Stoker. For free step by step plans on building your own solar and wind power generators visit home solar
