Government Rebates and Schemes
Both the Federal and NSW State Governments have introduced rebates and schemes in order to make living sustainably more affordable.
See below for more information about RECs, rebates, feed-in tariff and Green Loans.
RECs
What are Renewable Energy Certificates (RECs)?
Renewable Energy Certificates (RECs) are an electronic form of currency. You receive one REC for every one megawatt hour (MWh) of electricity generated by your small scale energy system that replaces electricity generated by fossil fuels.
Am I eligible to receive RECs?
You could be eligible to receive RECs if you install one of the following small scale energy systems at home:
- a solar photovoltaic (PV) power system
- a wind power (turbine) system
- a hydro (water) power system
- a solar hot water system
- a heat pump hot water system
You may not be entitled to RECs if your home is being built by a builder or property developer and the system is included as part of the building contract. In this case, RECs are likely to be created and traded by the builder.
What are RECs worth?
The value of a REC is not a fixed price. RECs are a tradable commodity, so the value of a REC is determined by the demand and supply for RECs and may vary from buyer to buyer and from day to day.
How can I use my RECs?
There are two ways RECs can give you a financial benefit:
1. You can sign your RECs over to a registered agent (usually the retailer of the product) in return for a discount or a cash payment at the time you buy your new system.
2. You can create, sell and transfer your RECs directly to a buyer via the REC registry.
Most people find it easier to assign their RECs to a registered agent when paying for their new system. Registered agents include installers and retailers of solar water heaters and small energy generation units.
The agent will usually:
- Determine whether your system is eligible for RECs
- Identify how many RECs will be created
- Offer you a financial benefit in return for the RECS. This could be a cash payment or an upfront discount on your new system.
What does the supplier do with the RECs?
The suppliers collect RECs which they can then on-sell in bulk.
How do RECs relate to the Renewable Energy Target (RET) scheme?
The RET scheme sets targets for the production of additional electricity generated from renewable energy sources. Australia currently has a set target of sourcing 20% of energy from renewable resources by 2020.
Electricity retailers and other purchasers of wholesale electricity (called liable parties) are required to contribute towards these increasing annual targets.
The liable parties show their compliance with the requirements of the RET scheme by obtaining RECs, where each REC is equal to one MWh of electricity generated from a renewable energy source.
Hold on to your RECs and help Australia produce more renewable energy
When you trade your RECs with your supplier in return for a discount, those RECs will then contribute to Australia's Renewable Energy Target (RET - see above). You can actually help Australia produce more energy from renewable resources by claiming your RECs than surrendering them. Your RECs then won't count towards Australia's RET, so more renewable energy will need to beproduced to meet that target.
Find out more
For more information about RECs, visit www.orer.gov.au/recs.
Solar Credits
The Solar Credit Scheme has replaced the Australian Government's $8,000 rebate for small-scale renewable energy systems, such as household solar PV systems. The Solar Credits scheme applies to all solar systems purchased from 9 June 2009. This scheme is not restricted by a $100,000 means test and is available for properties that are not primary residences, such as holiday and investment properties.
Solar Credits are part of the Renewable Energy Target (RET) scheme, which aims to ensure that 20% of Australia's electricity is generated from renewable sources by 2020.
When you purchase a solar PV system between 1 July 2009 and June 2012, you will receive five times the number of RECs for up to 1.5kW of the system. Solar Credits are not available to homeowners who have already received or plan to apply for the $8,000 rebate.
Rebates
What rebates does the Australian Government offer?
The Australian Government has announced a new household Renewable Energy Bonus Scheme to replace the Home Insulation Program and the Solar Hot Water Rebate Program, both of which are discontinued as of close of business 19 February 2010.
From 20 February 2010, rebates for solar hot water systems are reduced from $1,600 to $1,000 and rebates for heat pump systems are reducd from $1,000 to $600. For information about transitional arrangements please visit the Australian Government website.
The insulation component of the Renewable Energy Bonus Scheme is expected to come into operation by 1 June 2010.
Further information about the Home Insulation Program will be provided on the Australian Government website in the near future. Householders can contact the Australian Government on 1800 808 571 if they require information in the meantime.
National Rainwater and Greywater Initiative
A rebate of up to $500 for the purchase and installation of:
- a rainwater tank system (if connected for internal re-use of water to a toilet and/or laundry)
OR
a permanent greywater treatment system.
Find out more about the National Rainwater and Greywater Initiative at www.environment.gov.au.
For eligibility requirements and more information about these programs visit the Australian Government's environment website www.livinggreener.gov.au.
Rebates are subject to change and you are advised to check with the Australian Government for current rebate availability.
What rebates does the NSW Government offer?
The NSW Government offers a number of rebates to eligible households.
NSW Rainwater Tank Rebate
- A rebate of up to $1 500 for the purchase and installation of a rainwater tank system. This rebate is administered through Sydney Water.
NSW Hot Water System Rebate
- A rebate of $300 for a gas hot water system with a five-star or higher energy rating.
- A rebate of $150 for a regulated or on-demand hot water circulator in conjuction with installation of a gas instantaneous hot water system with five-star or higher energy rating.
- A rebate of up to $300 for a solar or heat pump hot water system.
For eligibility requirements and more information about these and other programs visit the NSW Government's website www.environment.nsw.gov.au/rebates
Rebates are subject to change and you are advised to check with the NSW Government for current rebate availability.
What rebates does my local council offer?
Currently only Lane Cove Council offers any rebates.
Lane Cove Council - Rainwater Tank Rebate Program
- A rebate of up to $550 for the purchase and installation of a rainwater tank system.
If you are a resident of the Lane Cove local government area, contact Lane Cove Council for more information or visit www.lanecove.nsw.gov.au.
Can I claim more than one rebate for a single product?
In most instances you will be able to claim a rebate under more than one program. For example, households that install a rainwater tank system may be eligible to claim a rebate from the Australian Government, the NSW Government and if applicable their local council. Some rebate programs will require you to send originals of your receipts. Make sure you make copies of the receipts first so you will be able to claim rebates from other agencies.
Usually the total sum of rebates received (across all programs) cannot exceed the total cost of installing the system.
Most programs will only pay for one rebate per product, per property. For example, if you (or a previous owner) have already received a rainwater tank rebate under the NSW Rainwater Tank Rebate Program, you will not be able to apply for another NSW Rainwater Tank Rebate Program rebate for that same property.
Feed-in Tariff
The NSW Government has recently announced it will introduce a gross feed-in tariff in January 2010, as part of the NSW Solar Bonus Scheme. Under the scheme solar PV owners will be paid 60 cents per kilowatt hour for all power generated by their solar PV system with a capacity of less than 10kW. The Scheme, the most generous of any in Australia, will pay qualifying Solar PV owners tax-free income for the next seven years. However residents are urged to install their solar PV system as soon as possible as the scheme is limited to the first 50 megawatts of installed solar PV.
For more information visit www.industry.nsw.gov.au.
Green Loans
What is the Green Loans program?
Green Loans is a new Australian Government initiative to help Australians tackle climate change. The Green Loans program will assist Australian families to install solar, water saving, and energy efficient products.
Green Loans has two main components of support from the Australian Government:
1. a free Home Sustainability Assessment and report (valued at more than $250); and
2. access to a Green Loans subsidy provided to participating financial institutions to cover up to four years interest free for borrowing of up to $10 000 to implement changes recommended in the assessment report.
Can the Green Loan be used in conjunction with other government rebates?
Yes. Eligibility for the loan subsidy is not affected by other available subsidies and incentives for the same items or actions.
How long will the Green Loan Program be available?
Green Loans will be discontinued from 22 March 2010. Note that eligibility for loans under the Green Loans program is determined by financial institutions subject to the lending criteria of the financial institution being satisfied.
Home Sustainability Assessments will continue to allow you to make informed decisions about how to improve the energy and water efficiency of your home. You can still book your home assessments on 1800 895 076, Monday to Friday 9am - 5pm.
How do I find out more information?
For more information about Green Loans and Home Sustainability Assessments, visit the Australian Government website www.environment.gov.au/greenloans.
