What you could get back with solar
One of the benefits of solar power is what you could receive for installing a solar power system and generating solar electricity. You could receive:
- Renewable Energy Certificates (RECs) – which can be used to help reduce upfront costs.
- Feed-in Tariffs – used to calculate your potential earnings from electricity you feed into the grid.
Renewable Energy Certificates (RECs)
The background
The Renewable Energy Certificates (RECs) scheme is a government initiative which aims to encourage an increase in the amount of electricity generated from renewable sources. When you purchase an eligible solar power, solar hot water or wind power system, you receive a number of RECs depending on your system’s size and your location.
The amount of RECs you receive is multiplied by five when you purchase a solar power system1. This is due to another government program – the Solar Credit Scheme.
What it means for your rebate
Here’s an example of how RECs could work for a solar power system owner in Melbourne2:
- Installing a 1.5 kW solar power system means you could be eligible for 26.6 RECs2.
- The Solar Credit Scheme multiplies these RECs by five (26.6 RECs X 5 = 133 RECs).
- So you could be eligible for – 133 RECs X <$REC Value> = <$Rebate Amount>>
- The value of the RECs can be applied to the value of the system you’re purchasing, reducing your upfront costs.
And here’s an example of how RECs could work for a solar power system owner in Sydney, Adelaide or Brisbane:
- Installing a 1.5 kW solar power system means you could be eligible for 31 RECs2.
- The Solar Credit Scheme multiplies these RECs by five (31 RECs X 5 = 155 RECs).
- So you could be eligible for – 155 RECs X <$REC Value> = <$Rebate Amount>
- The value of the RECs can be applied to the value of the system you’re purchasing, reducing your upfront costs.
To find out what RECs are currently worth – visit the AGL Solar RECs page.
For general RECs information – visit the Office of the Renewable Energy Regulator website.
1 The REC multiplier (solar credit scheme) is applies to the first 1.5kW of installed capacity, and is designed to discount the initial outlay. Anything over this threshold has the standard volume of RECs assigned.
2 Calculated at October 2010. RECs value and number are not set by AGL and are subject to change.
Feed-in tariffs
The background
A feed-in tariff is the amount paid to you per kWh for the electricity your solar power system feeds into the electricity grid.
What it means for your rebate
A feed-in tariff, and how you are paid for the electricity you generate, differs depending on:
- which energy retailer you’re with
- the state in which your property is located.
Depending on your property’s location, you will either be paid by a gross metering system, or a net metering system:
- Gross metering – is where all the solar electricity your system generates is fed into the grid, and you’re paid a feed-in tariff for every kWh of solar electricity you generate.
- Net metering – is where the difference between the solar electricity generated and what you’ve used (the excess solar electricity) is fed into the grid, and you’re paid a feed-in tariff for every excess kWh generated and fed into the grid.
Call 1300 076 188 for more information.