The Federal Government has announced it will phase out the Solar Credits mechanism six months ahead of schedule on the 1st of January 2013, to help lower the impact of the high uptake of Photovoltaic Solar Power (PV) on electricity costs for homes and businesses.
Minister for Climate Change and Energy Efficiency, Mr Greg Combet said the phasing out the multiplier early would strike a balance between easing upward pressure on electricity prices and supporting households and suppliers who install solar PV.
He added the installation of small-scale systems and solar hot water heaters continued to be supported under the Renewable Energy Target scheme, with solar PV systems benefiting from generous arrangements that provide support for 15 years worth of generation upfront.
The Solar Credits mechanism has provided additional support for installations of small-scale solar PV by multiplying the number of certificates these systems would usually create under the Renewable Energy Target scheme.
As this benefit was never available to solar hot water heaters, the phase out puts solar PV and solar water heaters back onto a level playing field, which EcoSmart Solar - Australia’s largest locally owned solar hot water company says is a welcome move.
Mr Romano Bolzon, General Manager at EcoSmart Solar said, “The Government has recognised the imbalance between Solar PV and Solar hot water and has adjusted the PV multiplier to support Australian manufacturing.
“This further improves the value proposition of solar water heaters and lifts the return on investment of solar hot water above Solar PV even further for homeowners. Coupled with rising electricity costs, solar hot water will once again become the preferred choice to reduce energy costs for the home,” he added.
The Government said more than 880,000 rooftop solar PV systems and more than 560,000 solar and heat pump water heaters have received support under the renewable energy target in the past five years.
Water heaters are one of the few remaining home appliances still made, predominantly in Australia.
Hot water heating is one of the most energy intensive activities in the home and is responsible for around 35 per cent of total household energy bills. It is also one of the world’s largest emitters of greenhouse gases.
By installing a solar hot water system, households can expect to substantially reduce energy bills, while producing up to 65 per cent less greenhouse gas emissions per year than traditional electric water heaters – an overall saving of three tonnes of carbon.
EcoSmart Solar offer a range of award-winning solar water heaters and solar electricity systems which uses the world’s latest solar technology, maximising solar absorption, increasing energy efficiency, and adding value to the home.
For further information on EcoSmart Solar’s range please visit ecosmart.com.au or call 1300 326 762.
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