Who The United States Needs To Follow In Home Solar Incentives
The United States does not have a home solar incentive near as good as Australia. For the last 8 years, Republicans have blocked solar incentives at the request of big oil. It is sad that the United States is who invented solar panels and yet we have lost our first advantage and continue to fall further behind the world.
But I digress. This article is about new legislation in Australia that gives a big boost to the home solar industry there.
A $7,000 discount will be given to anyone who installs a 1.5 kW (9 panel) solar system thanks to the Australian passed legislation called RET (Renewable Energy Target).
The Coalition and business and green lobby groups pressured the Australian government to split the RET portion of the bill from the disputed Emissions Trading (ETS) bill. Previously they had both been one bill but as the fighting heated up over the ETS bill, it was clear that it was better to split the RET and the ETS into two separate bills and so that the RET portion of the bill could be passed.
The $7,000 home solar discount is for all grid connected structures. It can be an owner occupied home, a renter occupied home, a vacation home, or even commercial buildings. The rebate threshold in earlier home solar discount programs of a taxable income of $100,000 has been eliminated.
The home solar credits scheme is ingenious in that it assigns a value of 500% the market value of what are know as RECs or Renewable Energy Certificates.
RECs or Renewable Energy Certificates were introduced in Australia at the end of 2001. Renewable Energy Certificates are what places a measurable value on the displacement of greenhouse gases. A single Renewable Energy Certificate is the equivalent of 1 mega Watt hour of electricity produced. This, in turn, is equal to about one ton of prevented greenhouse emissions. Renewable Energy Certificates provide a financial incentive to burn less fossil fuel.
It depends on where you live and how many hours of sunshine you receive on an annual basis but there are about 33 RECs (Renewable Energy Certificates) given for a 1.5 kW solar energy install. The value of a REC is subject to market variation but they are currently trading around $37. This translates into 33 x $37 = $1,221. You now multiply this by 500%, which is the amount set in this new home solar credit, $1,221 x 500% = $6,105.
The first 1.5kW of solar panels installed get the discount. For higher output solar panel installs, the usually 1:1 rate of Renewable Energy Certificates applies. The ORER (Office Of Renewable Energy Regulator) will issue the discounts. People having solar panels installed can decide if they want to use the Renewable Energy Certificates to pay the solar power installer in order to lower upfront costs, or they can hold on to their certificates like a stock with the idea of selling it in the future when they increase in value.
Now why can not something like this be done in the United States of America were solar panels were first invented. I guess in America it is all about money and the big oil and energy companies do not want you producing your own energy, even if it is better for the environment. They would rather destroy all life on the planet rather than lose you as a paying energy customer.