New regulations for Solar Credits multiplier

07 Oct 2010

The Government has proposed new regulations that specify the circumstances under which the regulator will be able to change the multiplier for Solar Credits. 

The regulator will reduce the multiplier, if in any quarter, more than 10% of systems that created certificates, were sold to customers at a net cost of less than $1,000 for each 1kW of system capacity.  So, for a 1.5kW system that would be $1,500 and $2,000 for a 2kW system.

This is the only trigger for reducing the multiplier that has been outlined in the regulations. On the basis that the Regulations are approved, this gives us some confidence that the multiplier will not be reduced until after the end of the first quarter of 2011.

To be able to determine the net cost of systems to customers, the Regulator will require us to include this information when we submit certificates for registration. We will therefore be required to collect details of out of pocket expenses incurred by the customer, when purchasing the small generation unit on the assignment form. That is, what the customer has paid for the system and installation after any rebates, value of certificates and any other benefit they have received (benefits from feed-in-tariffs are not included).

The regulations are currently undergoing consultation with submissions due by close of business Friday, 29 October 2010.follow our blog

New regulations for Solar Credits multiplier