Australia phases out small-scale solar support mechanism early

Nov 16, 2012 - The Australian government will bring forward the phase-out of the Solar Credits mechanism, which has provided additional incentives for small-scale photovoltaic (PV) installations, citing continued strong interest in household solar.

The mechanism will be phased out six months earlier than planned on January 1, 2013, to ease the pressure from the solar uptake on electricity prices, Minister for Climate Change and Energy Efficiency Greg Combet said on Friday.
The move is expected to reduce electricity bills by AUD 80 million (USD 82.6m/EUR 64.9m) to AUD 100 million in 2013, while by 2014, the small-scale scheme is projected to cost power consumers some 70% less than in 2012.

Small-scale systems and solar hot water heaters will continue to receive support under the Renewable Energy Target (RET) scheme. The Solar Credits mechanism has offered small-scale PV installations additional incentives by multiplying the number of certificates such systems would generate under the RET scheme.

Since November 2007, more than 880,000 rooftop solar systems and more than 560,000 solar and heat pump water heaters have been backed by the RET scheme, according to the announcement.

(AUD 1.0 = USD 1.032/EUR 0.811)

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