Understanding Schemes & Rebates

Understanding Schemes & Rebates

OVERVIEW:

From 01 January 2011, the Renewable Energy Target [RET] was divided into two parts.

  1. Large-scale Renewable Energy Target [LRET}
  2. Small-scale Renewable Energy Target [SRES]

Both parts of this scheme were established to encourage more generation of electricity from renewable energy sources by providing a way for small scale systems and renewable energy power stations to create and sell certificates, based on the amount of renewable electricity that they produce or displace.  Both parts of the scheme are administered by the Office of the Renewable Energy Regulator [ORER].

SRES:

This scheme is applicable to small scale installations such as domestic Grid Connect systems.  It works by assigning eligible systems a certain number of Small-scale Technology Certificates [STC's] based on the amount of electricity the system produces or displaces.  These STCs can be created and sold to buyers.  These are then sold to liable entities that are required to purchase a certain amount of STCs per year.

STCs are equivalent to 1 MWh of renewable electricity deemend to be generated by a Small Generation Unit [SGU].  The amount is calculated using:

  1. type of SGU used [solar, wind or hydro]
  2. rated power output of the system
  3. period of time assigned
  4. postcode of the installation address

STCs can be created and sold in one of two ways.

  1. STCs can be assigned at the time of purchase of your system to a registered agent in exchange for a financial benefit such as delayed cash payment or more commonly an upfront discount off the cost of the system.
  2. STCs can be sold by the owner of the system, either through the open STC market [pricing subject to market forces] or through the STC Clearing House [at a fixed price].

SOLAR CREDITS:

Solar Credits are a mechanism that allow the number of STCs able to be created for a SGU, to be muliplied by a factor determined by the installation date.  The current level of assistance from 01 July 2011 to 30 June 2012 is by a multiplier of 3.   Unlike STCs where the creation rate is 1:1, Solar Credits only apply to the first 1.5kW of on-grid capacity.

RENEWABLE ENERGY BUYBACK SCHEME [REBS]:

REBS allows retail providers such as Synergy and Horizon Power to purchase energy generated by renewable energy systems.  As the rate offered through REBS is determined by these electricity retailers it may vary over time.

In Western Australia, residents connected to the South West Interconnected Scheme [SWIS] are customers of Synergy and cannot choose their retailer.

To take advantage of REBS you will need to ensure that your meter is compliant with Synergy’s requirements and submit an application for REBS to Synergy.

NET FEED IN TARIFF [FIT]:

The Feed-in tariff is a premium paid by the Government to eligible system owners, also to encourage the installation of renewable energy systems.  However unlike REBS, the FIT is not a payment for the energy generated by your system, but rater a subsidy that is paid per unit of energy that is exported to the grid.  This energy is in excess of household consumption as recorded by the meter.  The feed-in tariff is currently paid for 10 years or until the property is sold or leased, in which case the new homeowner or tenant would receive the balance of the term.  The FIT is administered by Synergy and Horizon Power on behalf of the Government.

Currently the FIT has been temporarily suspended by the Government pending review.