The Solar Credits Scheme:
A Fair Deal At Last?

With the Solar Credits scheme the Australian Government finally seems set to offer reasonable solar power rebates. Hopefully this will mean that people on low to middle average incomes may be able to afford solar installations on their rooves.

The Current Rebates Don't Work

Currently one is able to apply for a rebate of up to $8000 on the installation of a new roof top solar system for a new or existing home.

In order to qualify for the current $8000 rebate, the Federal Government has set the maximum household income at $100,000 per annum.

I'm not sure about other people, but our household is a two-income one. We are both teachers and so don't earn much, a little above $100,000 in total. So we don't qualify for the grant.

Yet there is no way we can afford anything near the cost of a solar power system. It's difficult enough just paying bills, kid's school fees, car repairs and so on.

I don't know where these families are that earn less than $100K a year and have spare cash for a solar installation. I suspect they are few and far between. This may account for the fact that when one strolls around the average suburb, there are NO solar installations to be seen.

The New Solar Credits Scheme

According to the Government fact sheet on the new scheme, there will be no means test applied. This means that anyone of any income can apply for the credits.

The credits apply only to the first 1.5kW of electricity capacity, which is more than enough for an average Aussie house. Regarding the amount of the rebate, the Government statement is: "Rooftop solar systems will generate solar credits equal to 15 years in advance, redeemable up-front based on the potential generation over the life of the system."

This will be affected by the area your home is in, but will also encourage correct installation of systems to maximise output. This is similar to the method used to calculate rebates in California.

It's About Time Too

Australia has a poor record with emissions and renewable energy. This plan to actually make solar installations affordable will hopefully help redress this situation somewhat.

When details are available about the amount to be rebated, we will know how serious this plan is.

Hopefully the incentives are strong, and we here in Aus can start to develop green electricity in a serious way.

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