Energy unit slide hits solar rollout

Adelaide Advertiser
Wednesday 7/10/2009 Page: 9

INCENTIVES for households and businesses to install solar panels have been slashed by more than a third in four months. People installing a 1.5kW solar energy system today will receive only a $4950 rebate instead of the $7750 they would have received in June. The currency used to determine the value of the rebate, renewable energy certificates (RECs), has dived to its lowest point in two years and there is no sign of a recovery. A spokeswoman for Federal Climate Change and Water Minister Penny Wong said the level of support depended on the price of RECs, "which may vary over time". solar panels and other small-scale energy systems installed on or after June 9 are entitled to extra RECs under the Solar Credit scheme.

"Through Solar Credits, households installing rooftop solar panels can receive five times as many RECs for each MW-hour of solar energy produced by their solar panels. "For example, based on a REC price of $40, a 1.5 kW solar panel system installed in Adelaide would receive $6200. Based on a REC price of $50, the same system would receive $7750." The head of environmental products at Next Generation Energy Solutions, Fernando Broder, said the REC price peaked at $50.75 in April this year and started falling in June. Yesterday the REC price was $33, "its lowest since September 2007". That equates to a discount of $4950 on a 1.5kW system installed in Adelaide.

Green Energy Trading managing director Rick Brazzale - Green Energy Trading managing director Rick Brazzale said the REC price was a function of supply and demand, with an oversupply of RECs due mainly to the popularity of solar hot water and, to some extent, solar energy. "The problem the industry and customers are facing at the moment is we have a bit of an oversupply and that's likely to persist for a couple of years," he said. "That means the price is not as attractive as it could be."

Adrian Ferraretto, from Solar Shop Australia, says solar panels are actually cheaper now than they were when the Federal Government offered a rebate. "The REC is a lower value than what the $8000 rebate was, but the price to customers pretty much remains the same, because the price of solar panels has dived, on the strength of the Aussie dollar."