On Wednesday 1st December, the Australian Government announced further changes to the Renewable Energy Target (RET) and in particular, the Solar Credits scheme, that will directly affect householders and businesses looking to invest in small scale renewable energy technologies such as small solar, wind and micro-hydro.

The Solar Credits scheme provides an increased number of RECs to people investing in small scale electricity generation technologies. Since June 2009, the scheme has allowed purchasers of small systems to create five times the amount of Renewable Energy Certificates (RECs) for small systems up to 1.5 kW in capacity.

The five times ‘multiplier’ was projected to begin to decrease from mid 2012, in line with projected reductions in the cost of technology. Given the significant cost reductions, particularly in solar photovoltaic technology over the past 12 months (i.e. approximately 50%), the Government has decided to bring forward the reduction of the multiplier to ‘four’ a year earlier – i.e. beginning on 1 July 2011.

The Alternative Technology Association is comfortable with the Government’s decision to bring forward the reduction in the multiplier, particularly in light of strong technology cost reductions in PV and the continuation of feed-in tariffs in most states offering an additional incentive to invest in small scale renewable energy.

For more information on this policy announcement, please email Damien at ATA at damien@ata.org.au or go to the Department of Climate Change and Energy Efficiency’s website at: www.climatechange.gov.au/en/government/initiatives/renewable-target.aspx