• The customer pays for a solar system through a combination of their own money and money generated from Small-scale Technology Certificates (STCs) that come with the solar system. An STC represents the equivalent of one megawatt hour of electricity generation from an accredited renewable energy source. 15 years’ worth of STCs can be created “up front”. In other words, you sell 15 years’ worth of renewable energy output upfront for a discount on the solar system.
• Prior to 1 January 2011, the price of Renewable Energy Certificates (RECs) fluctuated daily. Now these commodities have been renamed Small-scale Technology Certificates and regulation has been put in place to stabilize their price.
For the first 1.5kW of generation, customers will receive a 3x multiplier on the number of STCs they are entitled to.
• Customers are also rewarded with a feed-in-tariff which pays them for the electricity generated by the solar system
• Net: Pays the customer for any extra energy produced which can be fed back into the National Grid. The customer is paid for all surplus energy that they do not use which can be used by the National Grid.
• Gross: The customer gets paid for every kW produced regardless of whether it is used by the customer or not.
|State||F.I.T Status||Max Size||Rate||Duration||Gross/Net|
|Victoria||Commenced September 30, 2012||99kW||8c/16c||15yrs/5yrs||Net|
• UPDATE: The Victorian Government will introduce a new Transitional Feed-in Tariff (TFIT) for properties installing rooftop solar panels to replace the current Premium Feed-in Tariff (PFIT), which will soon reach its statutory capacity of 100 megawatts. With the cap nearly reached, Energy Minister Michael O’Brien said the premium tariff would be replaced by a temporary rate of 25¢ for customers who have already paid a deposit or are having solar systems installed and have all the required paperwork submitted before 30 September 2011.
• The credits earned under the Feed-In Tariff are either credited to your electricity account or paid to you in the form of a cheque. This occurs quarterly or annually depending on the electricity retailer.
• In simple terms, the more electricity you export to the grid, the more money you will save on your power bill.
• The easiest way to do this is to change your consumption patterns from daylight to night time hours.