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Solar Credit FAQs

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  1. What are Solar Credits?
  2. Can I claim Solar Credits if I've got a rebate?
  3. If this is my second system  can I claim Solar Credits?
  4. I’m extending an existing system - can I claim Solar Credits?
  5. How many times can I claim Solar Credits?
  6. Which systems are eligible for Solar Credits?
  7. What are phantom RECs?
  8. Does it matter when my system was installed?
  9. How do I calculate Solar Credits?
  10. How long will the Solar Credits scheme last?
  11. How long do I have to create Solar Credits?
  12. What's an eligible premises for Solar Credits?
  13. What's NOT classified as an eligible premises (so I can’t get Solar Credits)?


1. What are Solar Credits?

The Solar Credits scheme was introduced by the federal government as part of the revised RET (Renewable Energy Target). Solar Credits, also known as the REC multiplier, mean that 5 times more RECs can be created for the first 1.5kW of eligible small generation units (small-scale solar PV, wind and hydro). Solar Credits aren't means tested, so anyone who meets the criteria can get them.


2. Can I claim Solar Credits if I've got a rebate?

No. If you've received approval or pre-approval for Commonwealth government rebates then you can't get Solar Credits. The rebates include; the Solar Homes and Communities Plan (SHCP), National Solar Schools Program (NSSP), Photovoltaic Rebate Programme (PVRP) and Renewable Remote Power Generation Program (RRPGP).

3. If this is my second system can I claim Solar Credits?

If the system is new, complete and separate, and you haven't received either a rebate (refer to the question above) or Solar Credits on the first system, then you can claim Solar Credits.


4. I’m extending an existing system -  can I claim Solar Credits?

No. Only new and complete systems can claim Solar Credits. In other words, the unit must not need any additional parts to produce electricity.


5. How many times can I claim Solar Credits?

You can only ever create Solar Credits once per system. You can choose to RECs in 1, 5 or 15 year deeming periods; however you can only ever claim Solar Credits on one of these periods i.e. if you choose to claim Solar Credits in 5 year periods you can only claim them for one of these periods.


6. Which systems are eligible for Solar Credits?

You can claim Solar Credits on the first 1.5kW of small-scale solar PV, wind and hydro. For systems greater than 1.5kW you get Solar Credits for the first 1.5kW then RECs at the normal 1:1 ratio for the rest of the system.


7. What are phantom RECs?

1 REC represents 1 megawatt hour of electricity produced by a renewable energy source. Phantom RECs refers to the extra 4 RECs produced through Solar Credits, which don’t represent any additional renewable energy generation. The term is popular in the media.


8. Does it matter when my system was installed?

Yes. Solar Credits can only be created for systems installed on or after 9 June 2009.


9. How do I calculate Solar Credits?

We've created a really easy calculator which does the work for you.


10. How long will the Solar Credits scheme last?

The Solar Credit multiplier will decrease over time. The 5x multiplier ends on 30 June 2012. Then it drops each year to 4x, then 3x, then 2x and finishes in June 2015.


11. How long do I have to create Solar Credits?

You can only claim Solar Credits AFTER your system’s been installed and you must make the claim within 12 months of the installation date.


12. What's an eligible premises for Solar Credits?

-    Houses, including the land the house is built on and outbuildings
-    Townhouse, apartment etc (each unit/flat is eligible for Solar Credits)
-    A school

Other premises located at an address including:
-    Businesses – e.g. motel, hotel, caravan park, hospital, nursing Homes (but each room is NOT an eligible premise)
-    Shops – including each shop in a shopping mall/ complex. A shop located on the same land as a house is a separate premises
-    The premises where a community group or institution carries on its activities e.g. Scout hall

If a farm has more than1 house, each can get Solar Credits.

13. What's NOT an eligible premises (so I can’t get Solar Credits)?

Some of these are:
-    Home offices located within a house
-    Street lights and signs
-    Mobile phone towers
-    Boats
-    Mobile homes (caravans)