Solar Credits & Rebates
To provide cash incentives for property owners to switch to solar energy, the Federal Government operates various rebate schemes. The main national schemes are as follows:

Solar Credits of up to $5,000 for a 1.5kW system
Renewable Energy Certificates for 1.5kW to 100kW installations

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Solar Credit scheme from 10 June 09
While the Federal Government created solar chaos by calling off the popular $8k solar rebate three weeks early - with less than eight hours notice - the new Solar Credits scheme was at least brought forward and commenced on 10 June 2009.

The Solar Credits scheme is available for all grid connected buildings, whether principal place of residence, rental, holiday home, commerical premises or rural construction. The scheme has no means test; the rebate threshold of a household taxable income of $100,000 has been abolished.

In replacing the $8,000 rebate, the Solar Credits scheme operates by attributing a value 5 times the market value of Renewable Energy Certificates (RECs, see below).

There are 31 RECs attached to a 1.5kW solar energy installation in Zone 3 (which covers most of Australia's population). The value of a REC is subject to market variation. A $30 REC price each equates to $930 value in RECs for a 1.5kW installation. Under Solar Credits, this figure is multiplied by five, to give a total discount of $4,650.

Solar Credits will apply to the first 1.5 kW of capacity installed. For systems above 1.5 kW, customers will be eligible for the standard 1:1 rate of RECs. Customers can elect to either assign them to the installer to keep the upfront cost of the solar installation down, or hold on to them just as you would a share portfolio.

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National Renewable Energy Certificates
The Federal Government began an initiative in December 2001 to place a value on displacement of greenhouse gases.

It created a scheme whereby Renewable Energy Certificates (RECs) could be cashed in so as to provide financial incentive for installing renewable energy systems such as solar.

One REC is equivalent to one Mega Watt Hour of electricity generated from a renewable energy source over a 15 year period, or roughly one tonne of abated greenhouse gas.

RECs are payable regardless of whether you install a grid connect or stand alone solar energy system. The more powerful your installation is, up to a maximum capacity of 100KW, the more you are entitled to.

The monetary value of one REC changes daily.