Solar IncentivesSolar Electricity - Photovoltaics Australians are being tempted with growing solar incentives that have been introduced to diversify the power grid. The core element of a solar electricity generating system is the panels that convert the sunlight to an electric current. While they may look similar to solar hot water system panels to the casual observer, they are very different technologies that work in entirely different ways. Since the recent price hikes for main grid power, lots of households have turned their attention to methods of generating their own power by harnessing the abundant solar energy that falls upon the earth each day. Combined with Feed In Tariffs (F.I.T.’s) the case for installation of renewable power generation systems now makes much more economic sense.
Government incentives to encourage small solar power installationsFederal GovernmentThe Australian Federal Government currently provides incentives to small scale alternative energy power generation sites through the Solar Credits Scheme. This scheme allows system owners to trade the Renewable Energy Certificates (REC’s) created by the installation of each system. The value of these REC’s are market based and fluctuate according to supply and demand. State Government Each state government has a determined a different level of solar incentives, or Feed In Tariffs, to encourage the uptake of renewable energy installations. In simple terms the FIT is the premium price that is paid to householders who are generating renewable energy and feeding it into the grid. These FIT’s are either “gross” or “nett” tariffs dependant on the legislation relevant to that state or territory. Under a gross arrangement, all of the electricity created attracts the premium price while the household “buys back” it’s requirements at the lower regulated tariff. Conversely, during the late afternoon/early evening when a typical house is at it's busiest, consumption may be at 2000 w while the solar system may be only producing 200 w (or nothing if it's dark). At this time the household will be buying in all or most of their power at the tariff applicable to that time of day. A net tariff therefore is most effective at encouraging households to minimize their consumption and drive behavioural change. A gross tariff is most effective at encouraging households to invest in renewable energy systems by providing very real financial solar incentives. This was evidenced by the enthusiasm with which New South Wales residents embraced the Gross Feed In Tariff scheme while it was offered at $0.60 per kwh. People who contracted to have a system installed between January 1 2010 and October 27 2010 will continue to receive the 60c per kwh through until December 31 2016. Everyone else that missed the cutoff will only receive the new rate of 20c per kwh.
OK, so what is solar energy?
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