Important solar industry news
May has been the month of some major changes for the solar industry, with both the Federal and Queensland Government announcing adjustments to solar incentive schemes.
Whilst these changes will have some impact on those installing solar after the beginning of June 2011, solar is still considered as one of the most cost-effective and sustainable forms of renewable energy and remains a viable option for Queenslanders.
On the 5 May, the Australian Minister for Climate Change and Energy Efficiency, Greg Combet, announced another reduction to the solar credits scheme, the second cut in just six months. The reduction is the Government’s response to increasing concerns about rising electricity prices, the growth of the solar industry and also an over-availability of credits.
Under the original STCs scheme, households were eligible for an upfront payment of five times the value of certificates their solar panels produced until the 1 July 2011 when the multiplier was to be reduced to four.
Now, after this newest announcement, the multiplier will be scaled back to three from 1 July 2011, following the Government’s plan to phase out the credits program over the next two years, with the program to effectively end on 1 July, 2013.
With the current price of STCs trading at $25 each, the rebate has fallen from $3,525 to $2,325 for households installing a standard 1.5kW solar PV system in Queensland after 30 June.
Solar still remains extremely popular particularly when considering the alternative of forever paying power bills that continue to rise. Also, keeping in mind that an average solar system can produce savings of approximately $40,000 over the life of the system, in comparison, this reduction in STCs is insignificant.
The Queensland Government also announced changes to the Solar Bonus Scheme this May, with adjustments to the eligibility criteria. From 7 June 2011, only solar PV systems under a 5kW capacity will be entitled to the scheme and a limit of one scheme per household.
Although the initial out-of-pocket costs have risen, the Queensland Government will continue to pay a minimum of 44cents per kWh for power fed back into the grid and with the effectiveness of solar panels continuing to improve; both the long-term financial and environmental benefits remain strong and indisputable.
If you are considering installing a system larger than a 5kW capacity, please see Auzion before the end of the May to ensure enough time is allowed to lodge the scheme with Energex before 7 June.