The Renewable Energy Target is under review
What does this mean for Solar PV?
The renewable energy target (RET) is mandated by the federal government to ensure that 20% of our stationary energy is produced from renewable sources by the year 2020.
Small technology such as residential solar PV and solar hot water systems qualify for the creation of Renewable Energy Certificates. Each certificate equates to one megawatt of energy produced over 1 year.
So, the rating of your solar system combined with how much sunlight your postcode receives over a year dictates how many renewable energy certificates can be created.
Your solar installer then sells these renewable energy certificates to a company such as Origin or Red Energy. The sale is then passed on to the customer in the form of a discount or as it is widely termed a “rebate”.
So the RET is currently under review by the Federal Government and could be cut. This will mean that there will be no “rebate” available for new people wanting to install solar. Therefore the cost to install solar will go up.
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