Overview
FACTS ABOUT SOLAR
The Gross Feed-in Tariff
Under a Gross Feed-in Tariff households will be paid for every single kilowatt hour of energy they generate instead being paid only for what they don’t use.
“These changes will see an average family paid around $1,496 a year…That’s a 62 percent increase on the previous scheme and means households can pay off their investment in solar panels in around eight years.” said Premier Nathan Rees.
Mr Rees said the scheme was proposed to run for seven years.
FAQs
Metering
How do I receive the gross payment?
Customers who meet all requirements for eligibility under the NSW Solar Bonus Scheme, including having a gross meter installed, can receive gross credits for their generation. To receive the higher gross credits, customers with a net meter need to switch to a gross meter. In most cases, the switch to a gross meter can be undertaken at a relatively low cost. However, in some cases, switching to gross metering can be more expensive.
What if I want to remain on or install with net metering?
Some people have indicated a desire to participate in the Scheme without switching their net meter. In recognition of this, eligible customers will be able to receive the generous Scheme credit of approximately 20 cents per kilowatt hour on a ‘net’ basis for electricity exported to the grid in excess of that used at the premises.
A regulatory amendment has been made extending the existing transition date for net metering under the Scheme. This enables customers with net meters to receive the approximately 20 cents feed-in tariff on a net basis for a further year, until 1 July 2011. Customers who have gross meters are not affected by this regulatory change.
The NSW Government’s policy intention is for both net and gross metering to be accepted for the life of the Scheme. The NSW Government proposes to make arrangements for this prior to 1 July 2011.
Customers in the EnergyAustralia and Country Energy distribution areas who meet all requirements for eligibility under the Scheme (other than having gross meters installed) and who prefer to install or remain on net metering, may choose to receive net credits for their generation. For customers in the Integral Energy distribution area, all new connections must have a gross meter installed to be eligible for the Scheme. For customers in the Integral Energy distribution area who installed net meters prior to the commencement of the Scheme, and who meet all requirements for eligibility under the Scheme (other than having gross meters installed) and who prefer to remain on net metering, may choose to receive net credits for their generation until the end of the transition period.
It is up to individual customers to decide what metering arrangement will best suit their property, system and budget. Customers are encouraged to contact their distributor or accredited service provider to discuss their metering options before making a final decision. Customers can still switch to a gross meter at any time during the course of the Scheme.
What is the difference between a ‘net’ and a ‘gross’ feed-in tariff and ‘net’ and ‘gross’ metering?
‘Gross’ feed-in tariffs are where the consumer is paid/credited for all the electricity generated by their renewable energy generator (e.g. solar photovoltaic system or wind turbine). In order to receive a gross feed-in tariff the consumer needs to have gross metering that can measure the ‘gross’ or total amount of electricity generated by their renewable energy generator that is exported to the grid.
‘Net’ feed-in tariffs are where the consumer is only paid/credited for the ‘net’ generated electricity they export to the national electricity grid from their renewable energy generator (not for the proportion of generated electricity they use themselves). In order to receive a ‘net’ feed-in tariff the consumer needs to have ‘net’ metering that can measure the net amount of generated electricity exported to the national electricity grid.
When will a gross meter be available?
The Government appreciates that customers are keen to participate in the Solar Bonus Scheme. Due to the high level of interest in the Scheme, the time to connect an eligible generator can be impacted by a number of factors, including the availability of solar panels from and installation timetables of accredited installers, the availability of meters and processing times for connection applications and associated work. Electricity network businesses are working hard to ensure customers wishing to participate in the Solar Bonus Scheme can be connected in a timely manner.
What happens if I have a net meter and am waiting for a gross meter to be installed?
Certain customers who meet all requirements for eligibility under the NSW Solar Bonus Scheme (other than having gross meters installed) and have net metering installed are able to receive net credits for their generation.
Can I have different types of metering arrangements?
A customer may only have one type of metering arrangement (gross or net).
What are the telephone contact numbers for electricity businesses?
Scheme parameters
How long will the Solar Bonus Scheme run for?
The Solar Bonus Scheme operates for 7 years from 1 January 2010 to 31 December 2016. Eligible customers will only be entitled to receive benefits from the Scheme during this time, irrespective of when the customer joins the Scheme.
Do all electricity retailers have to participate in the Solar Bonus Scheme?
Yes, all electricity retailers who supply small retail customers are required to participate in the Solar Bonus Scheme.
Will the Solar Bonus Scheme be reviewed?
The legislation requires the Minister to review the scheme in 2012 or when capacity reaches 50 megawatts, whichever occurs first. The scheme has now reached the 50 megawatt level and a review has commenced. The purpose of the review is to determine whether the policy objectives of the Scheme remain valid and whether the terms of the Electricity Supply Act remain appropriate for securing those objectives.
The review will impact only on new entrants to the Scheme which means if changes are required they will not be applied retrospectively to customers who have already joined the Scheme. As required by the legislation, a report on the outcome of the review will be tabled in each of the Houses of Parliament.
In 2011, the Auditor-General will also review and report to each of the Houses of Parliament on the Scheme.
How is the Solar Bonus Scheme being reviewed and how can I have my say?
The review is to assess the Scheme against its policy objectives of boosting industry, supporting green jobs and renewable energy.
Industry & Investment NSW is reviewing the scheme and is inviting submissions from the public on whether the policy objectives outlined in section 15A of the Electricity Supply Act remain valid and the terms of the Act are appropriate for securing those objectives.
Specifically these objectives as defined in the Act are:
a. to encourage and support persons who want to generate renewable energy as a response to climate change;
b. to develop jobs in the renewable energy sector by assisting renewable energy generation to compete with non-renewable energy generation;
c. to increase public exposure to renewable energy technology in order to encourage the whole community to respond to climate change.
Key terms of the Act for securing the above objectives are contained in section 15A and include:
Submissions may be emailed to solarbonus.review@industry.nsw.gov.au or sent by post to:
Solar Bonus Review
Industry & Investment NSW
Level 17, 227 Elizabeth Street
Sydney NSW 2000
by close of business 30 September 2010.
Feedback received will be considered and will inform the review. A report on the outcomes of the review will be tabled in the NSW Parliament. Please note, submissions received may be made publically available. If you wish for your submission to be kept confidential you will need to make this request at the time of lodging your submission.
Why doesn’t the Solar Bonus Scheme guarantee seven year contracts to scheme participants regardless of when they join the Scheme?
Individualising the length of Solar Bonus Scheme payments poses serious administrative, compliance, and enforcement issues that are likely to increase overall Scheme costs for customers. For example, such a design would mean that businesses administering the Scheme would be responsible for monitoring the entry of participants in the Scheme and ensuring that credits cease to be recorded seven years from the date of each customer’s participation in the Scheme.
All states in Australia apart from the Australian Capital Territory have proposed defined feed-in tariff scheme durations rather than individualising length of Scheme payments for each customer.
The Government is very concerned to get the balance right for the Solar Bonus Scheme so that consumers are not burdened with excessive costs. This keeps costs down for all energy customers.
What is the Solar Bonus Scheme’s regulatory framework?
The Solar Bonus Scheme’s regulatory framework is set out in the Electricity Supply Act 1995 and the Electricity Supply (General) Regulation 2001 available at http://www.legislation.nsw.gov.au/.
Eligibility
What are the factors to consider before installing a solar photovoltaic (PV) system or wind turbine?
Solar PV systems installed and connected after 1 January 2010 must be installed by a person, who at the time of the installation had a Grid-connect Design & Install accreditation from the Clean Energy Council to be eligible for the Solar Bonus Scheme.
The Clean Energy Council also has information on Approved Grid Connect Inverters and solar photovoltaic (PV) modules suitable for installation under the Commonwealth Government rebate programs and Renewable Energy Certificate (REC) schemes. To find an accredited installer visit:
http://www.cleanenergycouncil.org.au/cec/accreditation/Solar-PV-accreditation/findaninstaller.html
Once the solar PV system or wind turbine is installed, customers must ensure that only a suitably qualified person connects the installation to the electrical wiring on their property, e.g. to their switchboard. A list of level 2 accredited service providers who may provide this service is on the Fair Trading web site:
http://www.fairtrading.nsw.gov.au/Consumers/Buying_services/Electricity_network_connections.html or call 9895 0009.
The Clean Energy Council has published a consumer guide for Solar PV:
http://www.cleanenergycouncil.org.au/cec/resourcecentre/Consumer-Info/solarPV-guide.html
The Commonwealth Government has prepared a quick guide to installing solar photovoltaic (PV) panels:
http://www.climatechange.gov.au/government/initiatives/renewable-target.aspx
For general consumer protection information and enquiries see the Fair Trading website www.fairtrading.nsw.gov.au or call 13 32 20.
For general planning information and enquiries see the Planning NSW website:
http://www.planning.nsw.gov.au/PlansforAction/PlanningforRenewableEnergy/tabid/394/language/en-US/Default.aspx or call (02) 9228 6111.
Who is eligible for the Solar Bonus Scheme?
Customers with an annual electricity consumption less than 160 megawatt hours (MWh) are eligible to participate in the Solar Bonus Scheme. These customers are known as small retail customers.
This category includes households (which consume approximately 7.6 MWh per annum on average), as well as some small businesses, schools and community organisations.
The Industry & Investment NSW website provides general information on the Solar Bonus Scheme to assist individuals and businesses interested in participating in the Scheme. Industry & Investment NSW cannot provide advice on the individual circumstances of interested participants.
Each customer has the responsibility for ensuring that their renewable energy generator installation meets all requirements of the Solar Bonus Scheme including complying with the metering and connection requirements of their distribution network.
What if my organisation has a large retail supply contract (for electricity consumption 160 MWh or greater) which consolidates a number of small sites (each consuming less than 160MWh)?
Only small retail customers are eligible to participate in the Solar Bonus Scheme. Your contract arrangements may affect what type of customer you are regardless of how much electricity is used at a particular site. If your contract is for consumption 160MWh or greater, you are not eligible to participate in the Scheme.
What renewable energy generators are eligible to participate in the Solar Bonus Scheme?
Solar photovoltaic (PV) panels or wind turbines (up to 10 kilowatts in capacity) that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) will be eligible for the Solar Bonus Scheme.
Solar PV systems installed and connected after 1 January 2010 must be installed by a person, who at the time of the installation had a Grid-connect Design & Install accreditation from the Clean Energy Council to be eligible for the Solar Bonus Scheme.
The Renewable Energy (RE) Industry Accreditation, an initiative of the Clean Energy Council, ensures that industry participants (such as PV installers) have a minimum level of competence in the design and installation of RE systems. To find an accredited installer visit:
http://www.cleanenergycouncil.org.au/cec/accreditation/Solar-PV-accreditation/findaninstaller.html.
What does the Solar Bonus Scheme’s 10 kilowatt capacity limit for renewable energy generators mean?
Only customers with solar photovoltaic (PV) panels or wind turbines (up to 10 kilowatts in capacity) that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) will be eligible for the Solar Bonus Scheme. Systems may have more than one inverter, provided their combined capacity is not greater than 10 kW.
This capacity limit applies regardless of how many phases of power supply a customer has. For instance, even if a customer has three phase power supply the capacity of their solar panels or wind turbine can be no greater than 10 kilowatts (kW) and the inverter via which they supply electricity to the grid can be no greater than 10 kW in capacity.
The Government is very concerned to get the balance right for the Solar Bonus Scheme so that consumers are not burdened with excessive costs. This keeps costs down for all energy customers.
The NSW Feed-in Tariff Taskforce examined issues around system size and eligible customers. In considering the issue of system size, the Taskforce assessed costs against the likely effectiveness of the Scheme in meeting its objectives. The Taskforce acknowledged that the larger the eligible system, the greater the likely penetration of the Scheme and therefore the increased support that it would provide for the solar PV industry. However, this was considered against the increasing total cost of the Scheme that larger systems would impose and the associated social equity issues.
The Taskforce considered the Government’s preference for a scheme that stimulates a large number of customers participating rather than a small number of large facilities.
The Taskforce noted that whereas a 5kW system limit would likely be sufficient for the residential sector, a 10kW system limit would allow the community and small business sectors to make use of larger roof space for solar PV systems.
In balancing these considerations, the Taskforce recommended a 10kW system limit.
Am I able to install more than one eligible renewable generator and receive the Solar Bonus Scheme credit?
No, only one eligible renewable energy generator (solar photovoltaic system or wind turbine) per customer will be eligible for the Solar Bonus Scheme credit.
Generators that have both solar photovoltaic and wind turbine components are regarded as multiple generators.
Customers with more than one site are eligible for one generator only, provided they meet the small customer threshold.
Why are large customers not eligible to participate in the Solar Bonus Scheme?
The Government has focused the Solar Bonus Scheme on small customers to maximise incentives for these customers to invest in small-scale renewable energy generators. Restricting the Scheme to small customers helps keeps the costs of the Scheme down for all energy customers.
Can community-owned solar farms participate in the Solar Bonus Scheme?
Yes, community-owned solar farms or community organisations are eligible to participate in the Solar Bonus Scheme as long as they meet the eligibility criteria for the Scheme, including that their solar photovoltaic (PV) system is no larger than 10 kilowatts (kW) in capacity and connects to the electricity network through an inverter (up to 10 kW in capacity) and their average electricity consumption is less than 160 megawatt hours (MWh) per annum.
Are wind turbines eligible to participate in the Solar Bonus Scheme?
Wind turbines up to 10 kilowatts in capacity that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) are eligible for the Solar Bonus Scheme.
Are businesses and community organisations eligible to participate in the Solar Bonus Scheme?
Yes, businesses and community organisations are eligible to participate in the Solar Bonus Scheme as long as they meet the eligibility criteria for the Scheme, such as their solar photovoltaic (PV) system or wind turbine is no larger than 10 kilowatts (kW) in capacity and connects to the electricity network through an inverter (up to 10 kilowatts in capacity) and their average electricity consumption is less than 160 megawatt hours (MWh) per annum.
Can owner’s corporations participate in the Solar Bonus Scheme?
Owner’s corporations may have an account for common power services distinct from individual lots. Owner’s corporations are eligible for Solar Bonus Scheme payments, provided they meet the Scheme’s criteria, for example, they consume less than 160 megawatt hours of electricity per year, have an eligible solar photovoltaic (PV) systems or wind turbine no larger than 10 kilowatts (kW) in capacity that connects to the electricity network through an inverter (up to 10 kilowatts in capacity) which is installed and connected to the national electricity grid on premises that they own or occupy in NSW.
How does the Solar Bonus Scheme apply to tenants and landlords?
Tenants who are responsible for the consumption of electricity at their leased premises may be eligible for the Scheme (provided all Scheme criteria are met). However, tenants will need to check their lease agreement before proceeding to install a generator as the express consent of their landlord will ordinarily be required.
A landlord who does not occupy the premises is unlikely to be eligible for the Scheme where the tenant is responsible for the consumption of electricity at those premises.
Scheme payments
How is the Solar Bonus Scheme tariff rate received? What happens to participating customers’ regular electricity bills?
All electricity retailers are required to provide eligible customers with either a Solar Bonus Scheme credit on their electricity bill or a cash payment representing this amount. How a customer receives their Solar Bonus Scheme benefit is at the discretion of the retailer.
From 1 July 2010 onwards a bill issued to an eligible small retail customer is required to include the amount of electricity supplied to the network during the billing period and the amount to be credited for that electricity. This allows electricity retailers time to ready their billing systems.
Customers should be aware that they may not receive the Solar Bonus Scheme credit and relevant details on their electricity bill until their first bill issued after 1 July 2010.
Will the Solar Bonus Scheme tariff include a GST component?
Customers should seek independent tax advice concerning GST and any other tax matters.
The NSW Government is not able to provide advice as to whether or not particular income or payments are taxable by the Commonwealth Government.
Customers should speak to their accountant or the Australian Tax Office for advice as to whether Solar Bonus Scheme payments are taxable in their particular circumstances. To contact the Australian Tax Office customers can visit http://www.ato.gov.au/ or call 13 28 66 for business tax enquiries or 13 28 61 for personal tax enquiries.
How will the Solar Bonus Scheme tariff affect my pension or other Centrelink payments?
Pensions and other Centrelink payments are managed by the Commonwealth Government, through Centrelink.
On 14 May 2010, in a Media Release by the Commonwealth Minister for Families, Housing, Community Services and Indigenous Affairs, the Commonwealth Government clarified the way feed-in tariffs from household solar panels are assessed for the purposes of the pension income test. The Commonwealth Minister has stated that:
For further information on how their pension or other payments may be affected by the Scheme customers should contact Centrelink to discuss their individual circumstances.
Customers should consider their options before deciding to participate in the NSW Solar Bonus Scheme.
To contact Centrelink customers can visit www.centrelink.gov.au or call their regular ’13′ telephone number.
Can I be backdated for electricity generated by eligible renewable energy generators under the Solar Bonus Scheme?
Only electricity generated and supplied by an eligible solar photovoltaic (PV) system or wind turbine, from the Scheme’s commencement onwards, or the date the meter is installed and connected, whichever is the latter, will be eligible for credit under the Solar Bonus Scheme.
Can I install a solar photovoltaic (PV) system or wind turbine up to 10 kilowatts on a neighbour’s roof and receive a credit under the Solar Bonus Scheme?
In order to receive benefits from the Solar Bonus Scheme, eligible customers must install and connect to the national electricity grid eligible solar photovoltaic (PV) systems or wind turbines no larger than 10 kilowatts (kW) in capacity that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) at premises that they own or occupy in NSW.
How much does a solar photovoltaic (PV) system cost?
You should seek independent advice on the actual costs of a system.
How much does a solar photovoltaic (PV) system generate and how are my Solar Bonus Scheme payments calculated?
Solar PV electricity generation will vary between any two individual installations depending on various factors including:
It is recommended that you seek advice from your system installer about the generation rates for your solar PV system.
Generation rates will affect your payments under the Solar Bonus Scheme. Your payments under the Solar Bonus Scheme can be calculated by multiplying the number of kilowatt hours exported by your solar PV system to the electricity network by $0.20.
FACTS ABOUT SOLAR
- Legislation was passed by parliament on 20th of August 2009. Under Renewable En ergy Target legislation, electricity retailers are required to purchase green energy from those households that are able to supply it.
- The Solar Bonus Scheme in NSW started on 1 Jan 2010 and will end on 1 Jan 2017.
- Participating home owners also get a rebate towards the cost of installation in the form of REC’s (Renewable Energy Certificates) which comes straight off the normal retail price.
- Australia is the only country in the world which has used these two incentives. All other countries have used the feed‐in‐tariff only as an incentive to move their populations to‐ wards clean sources of energy.
- Australia is producing less than 2% of its energy through green means, and is lagging be‐ hind the rest of the developed world. Scotland, for example, produces five times more solar energy than us. Spain 50 times, and Germany 500 times.
- Australia is also the largest emitter of CO2 gases per head of population .
- Australia has now made a commitment to ensure that 20% of the country’s electricity supply is from renewable sources by 2020. This means that in 10 yrs time the amount of electricity coming from renewable sources like solar, wind, and geothermal will be about equal to Australia’s current household electricity use.
- The cost of electricity in Australia has skyrocketed recently, with prices going up 21% in June 2009, and similar rises due end July 2010 and every year after that.
- Following this increase, 18,000 households had their power cut off in NSW alone due to their inability to pay their bill.
- Whether you install solar panels or not, a portion of your electricity bill is being used to fund those home owners who are making the move towards green energy.
- A small to medium size solar installation will save on average between 1.5 and 3 tonnes of CO2 per quarter.
The Gross Feed-in Tariff
Under a Gross Feed-in Tariff households will be paid for every single kilowatt hour of energy they generate instead being paid only for what they don’t use.
“These changes will see an average family paid around $1,496 a year…That’s a 62 percent increase on the previous scheme and means households can pay off their investment in solar panels in around eight years.” said Premier Nathan Rees.
Mr Rees said the scheme was proposed to run for seven years.
FAQs
Metering
How do I receive the gross payment?
Customers who meet all requirements for eligibility under the NSW Solar Bonus Scheme, including having a gross meter installed, can receive gross credits for their generation. To receive the higher gross credits, customers with a net meter need to switch to a gross meter. In most cases, the switch to a gross meter can be undertaken at a relatively low cost. However, in some cases, switching to gross metering can be more expensive.
What if I want to remain on or install with net metering?
Some people have indicated a desire to participate in the Scheme without switching their net meter. In recognition of this, eligible customers will be able to receive the generous Scheme credit of approximately 20 cents per kilowatt hour on a ‘net’ basis for electricity exported to the grid in excess of that used at the premises.
A regulatory amendment has been made extending the existing transition date for net metering under the Scheme. This enables customers with net meters to receive the approximately 20 cents feed-in tariff on a net basis for a further year, until 1 July 2011. Customers who have gross meters are not affected by this regulatory change.
The NSW Government’s policy intention is for both net and gross metering to be accepted for the life of the Scheme. The NSW Government proposes to make arrangements for this prior to 1 July 2011.
Customers in the EnergyAustralia and Country Energy distribution areas who meet all requirements for eligibility under the Scheme (other than having gross meters installed) and who prefer to install or remain on net metering, may choose to receive net credits for their generation. For customers in the Integral Energy distribution area, all new connections must have a gross meter installed to be eligible for the Scheme. For customers in the Integral Energy distribution area who installed net meters prior to the commencement of the Scheme, and who meet all requirements for eligibility under the Scheme (other than having gross meters installed) and who prefer to remain on net metering, may choose to receive net credits for their generation until the end of the transition period.
It is up to individual customers to decide what metering arrangement will best suit their property, system and budget. Customers are encouraged to contact their distributor or accredited service provider to discuss their metering options before making a final decision. Customers can still switch to a gross meter at any time during the course of the Scheme.
What is the difference between a ‘net’ and a ‘gross’ feed-in tariff and ‘net’ and ‘gross’ metering?
‘Gross’ feed-in tariffs are where the consumer is paid/credited for all the electricity generated by their renewable energy generator (e.g. solar photovoltaic system or wind turbine). In order to receive a gross feed-in tariff the consumer needs to have gross metering that can measure the ‘gross’ or total amount of electricity generated by their renewable energy generator that is exported to the grid.
‘Net’ feed-in tariffs are where the consumer is only paid/credited for the ‘net’ generated electricity they export to the national electricity grid from their renewable energy generator (not for the proportion of generated electricity they use themselves). In order to receive a ‘net’ feed-in tariff the consumer needs to have ‘net’ metering that can measure the net amount of generated electricity exported to the national electricity grid.
When will a gross meter be available?
The Government appreciates that customers are keen to participate in the Solar Bonus Scheme. Due to the high level of interest in the Scheme, the time to connect an eligible generator can be impacted by a number of factors, including the availability of solar panels from and installation timetables of accredited installers, the availability of meters and processing times for connection applications and associated work. Electricity network businesses are working hard to ensure customers wishing to participate in the Solar Bonus Scheme can be connected in a timely manner.
What happens if I have a net meter and am waiting for a gross meter to be installed?
Certain customers who meet all requirements for eligibility under the NSW Solar Bonus Scheme (other than having gross meters installed) and have net metering installed are able to receive net credits for their generation.
Can I have different types of metering arrangements?
A customer may only have one type of metering arrangement (gross or net).
What are the telephone contact numbers for electricity businesses?
- Integral Energy customer contact number 131 002.
- EnergyAustralia call centre number 131 535.
- Country Energy ‘energyanswers’ number 1800 ENERGY or 1800 363 749.
Scheme parameters
How long will the Solar Bonus Scheme run for?
The Solar Bonus Scheme operates for 7 years from 1 January 2010 to 31 December 2016. Eligible customers will only be entitled to receive benefits from the Scheme during this time, irrespective of when the customer joins the Scheme.
Do all electricity retailers have to participate in the Solar Bonus Scheme?
Yes, all electricity retailers who supply small retail customers are required to participate in the Solar Bonus Scheme.
Will the Solar Bonus Scheme be reviewed?
The legislation requires the Minister to review the scheme in 2012 or when capacity reaches 50 megawatts, whichever occurs first. The scheme has now reached the 50 megawatt level and a review has commenced. The purpose of the review is to determine whether the policy objectives of the Scheme remain valid and whether the terms of the Electricity Supply Act remain appropriate for securing those objectives.
The review will impact only on new entrants to the Scheme which means if changes are required they will not be applied retrospectively to customers who have already joined the Scheme. As required by the legislation, a report on the outcome of the review will be tabled in each of the Houses of Parliament.
In 2011, the Auditor-General will also review and report to each of the Houses of Parliament on the Scheme.
How is the Solar Bonus Scheme being reviewed and how can I have my say?
The review is to assess the Scheme against its policy objectives of boosting industry, supporting green jobs and renewable energy.
Industry & Investment NSW is reviewing the scheme and is inviting submissions from the public on whether the policy objectives outlined in section 15A of the Electricity Supply Act remain valid and the terms of the Act are appropriate for securing those objectives.
Specifically these objectives as defined in the Act are:
a. to encourage and support persons who want to generate renewable energy as a response to climate change;
b. to develop jobs in the renewable energy sector by assisting renewable energy generation to compete with non-renewable energy generation;
c. to increase public exposure to renewable energy technology in order to encourage the whole community to respond to climate change.
Key terms of the Act for securing the above objectives are contained in section 15A and include:
- the length of the scheme – commencing on 1 January 2010 and operating for 7 years.
- current tariff rate – crediting eligible customers at a rate of approximately 20 cents per kilowatt hour.
- tariff type – customers with a gross meter receive a ‘gross’ feed-in tariff rate for all the electricity that their eligible solar photovoltaic (PV) system or wind turbine generates.
- customer eligibility requirements – small electricity customers (those with an annual electricity consumption of up to 160 megawatt hours) are eligible to participate in the Scheme.
- system eligibility requirements – only customers with one solar photovoltaic (PV) panel and wind turbines (up to 10 kilowatts in capacity) that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) are eligible to participate in the Scheme.
Submissions may be emailed to solarbonus.review@industry.nsw.gov.au or sent by post to:
Solar Bonus Review
Industry & Investment NSW
Level 17, 227 Elizabeth Street
Sydney NSW 2000
by close of business 30 September 2010.
Feedback received will be considered and will inform the review. A report on the outcomes of the review will be tabled in the NSW Parliament. Please note, submissions received may be made publically available. If you wish for your submission to be kept confidential you will need to make this request at the time of lodging your submission.
Why doesn’t the Solar Bonus Scheme guarantee seven year contracts to scheme participants regardless of when they join the Scheme?
Individualising the length of Solar Bonus Scheme payments poses serious administrative, compliance, and enforcement issues that are likely to increase overall Scheme costs for customers. For example, such a design would mean that businesses administering the Scheme would be responsible for monitoring the entry of participants in the Scheme and ensuring that credits cease to be recorded seven years from the date of each customer’s participation in the Scheme.
All states in Australia apart from the Australian Capital Territory have proposed defined feed-in tariff scheme durations rather than individualising length of Scheme payments for each customer.
The Government is very concerned to get the balance right for the Solar Bonus Scheme so that consumers are not burdened with excessive costs. This keeps costs down for all energy customers.
What is the Solar Bonus Scheme’s regulatory framework?
The Solar Bonus Scheme’s regulatory framework is set out in the Electricity Supply Act 1995 and the Electricity Supply (General) Regulation 2001 available at http://www.legislation.nsw.gov.au/.
Eligibility
What are the factors to consider before installing a solar photovoltaic (PV) system or wind turbine?
Solar PV systems installed and connected after 1 January 2010 must be installed by a person, who at the time of the installation had a Grid-connect Design & Install accreditation from the Clean Energy Council to be eligible for the Solar Bonus Scheme.
The Clean Energy Council also has information on Approved Grid Connect Inverters and solar photovoltaic (PV) modules suitable for installation under the Commonwealth Government rebate programs and Renewable Energy Certificate (REC) schemes. To find an accredited installer visit:
http://www.cleanenergycouncil.org.au/cec/accreditation/Solar-PV-accreditation/findaninstaller.html
Once the solar PV system or wind turbine is installed, customers must ensure that only a suitably qualified person connects the installation to the electrical wiring on their property, e.g. to their switchboard. A list of level 2 accredited service providers who may provide this service is on the Fair Trading web site:
http://www.fairtrading.nsw.gov.au/Consumers/Buying_services/Electricity_network_connections.html or call 9895 0009.
The Clean Energy Council has published a consumer guide for Solar PV:
http://www.cleanenergycouncil.org.au/cec/resourcecentre/Consumer-Info/solarPV-guide.html
The Commonwealth Government has prepared a quick guide to installing solar photovoltaic (PV) panels:
http://www.climatechange.gov.au/government/initiatives/renewable-target.aspx
For general consumer protection information and enquiries see the Fair Trading website www.fairtrading.nsw.gov.au or call 13 32 20.
For general planning information and enquiries see the Planning NSW website:
http://www.planning.nsw.gov.au/PlansforAction/PlanningforRenewableEnergy/tabid/394/language/en-US/Default.aspx or call (02) 9228 6111.
Who is eligible for the Solar Bonus Scheme?
Customers with an annual electricity consumption less than 160 megawatt hours (MWh) are eligible to participate in the Solar Bonus Scheme. These customers are known as small retail customers.
This category includes households (which consume approximately 7.6 MWh per annum on average), as well as some small businesses, schools and community organisations.
The Industry & Investment NSW website provides general information on the Solar Bonus Scheme to assist individuals and businesses interested in participating in the Scheme. Industry & Investment NSW cannot provide advice on the individual circumstances of interested participants.
Each customer has the responsibility for ensuring that their renewable energy generator installation meets all requirements of the Solar Bonus Scheme including complying with the metering and connection requirements of their distribution network.
What if my organisation has a large retail supply contract (for electricity consumption 160 MWh or greater) which consolidates a number of small sites (each consuming less than 160MWh)?
Only small retail customers are eligible to participate in the Solar Bonus Scheme. Your contract arrangements may affect what type of customer you are regardless of how much electricity is used at a particular site. If your contract is for consumption 160MWh or greater, you are not eligible to participate in the Scheme.
What renewable energy generators are eligible to participate in the Solar Bonus Scheme?
Solar photovoltaic (PV) panels or wind turbines (up to 10 kilowatts in capacity) that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) will be eligible for the Solar Bonus Scheme.
Solar PV systems installed and connected after 1 January 2010 must be installed by a person, who at the time of the installation had a Grid-connect Design & Install accreditation from the Clean Energy Council to be eligible for the Solar Bonus Scheme.
The Renewable Energy (RE) Industry Accreditation, an initiative of the Clean Energy Council, ensures that industry participants (such as PV installers) have a minimum level of competence in the design and installation of RE systems. To find an accredited installer visit:
http://www.cleanenergycouncil.org.au/cec/accreditation/Solar-PV-accreditation/findaninstaller.html.
What does the Solar Bonus Scheme’s 10 kilowatt capacity limit for renewable energy generators mean?
Only customers with solar photovoltaic (PV) panels or wind turbines (up to 10 kilowatts in capacity) that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) will be eligible for the Solar Bonus Scheme. Systems may have more than one inverter, provided their combined capacity is not greater than 10 kW.
This capacity limit applies regardless of how many phases of power supply a customer has. For instance, even if a customer has three phase power supply the capacity of their solar panels or wind turbine can be no greater than 10 kilowatts (kW) and the inverter via which they supply electricity to the grid can be no greater than 10 kW in capacity.
The Government is very concerned to get the balance right for the Solar Bonus Scheme so that consumers are not burdened with excessive costs. This keeps costs down for all energy customers.
The NSW Feed-in Tariff Taskforce examined issues around system size and eligible customers. In considering the issue of system size, the Taskforce assessed costs against the likely effectiveness of the Scheme in meeting its objectives. The Taskforce acknowledged that the larger the eligible system, the greater the likely penetration of the Scheme and therefore the increased support that it would provide for the solar PV industry. However, this was considered against the increasing total cost of the Scheme that larger systems would impose and the associated social equity issues.
The Taskforce considered the Government’s preference for a scheme that stimulates a large number of customers participating rather than a small number of large facilities.
The Taskforce noted that whereas a 5kW system limit would likely be sufficient for the residential sector, a 10kW system limit would allow the community and small business sectors to make use of larger roof space for solar PV systems.
In balancing these considerations, the Taskforce recommended a 10kW system limit.
Am I able to install more than one eligible renewable generator and receive the Solar Bonus Scheme credit?
No, only one eligible renewable energy generator (solar photovoltaic system or wind turbine) per customer will be eligible for the Solar Bonus Scheme credit.
Generators that have both solar photovoltaic and wind turbine components are regarded as multiple generators.
Customers with more than one site are eligible for one generator only, provided they meet the small customer threshold.
Why are large customers not eligible to participate in the Solar Bonus Scheme?
The Government has focused the Solar Bonus Scheme on small customers to maximise incentives for these customers to invest in small-scale renewable energy generators. Restricting the Scheme to small customers helps keeps the costs of the Scheme down for all energy customers.
Can community-owned solar farms participate in the Solar Bonus Scheme?
Yes, community-owned solar farms or community organisations are eligible to participate in the Solar Bonus Scheme as long as they meet the eligibility criteria for the Scheme, including that their solar photovoltaic (PV) system is no larger than 10 kilowatts (kW) in capacity and connects to the electricity network through an inverter (up to 10 kW in capacity) and their average electricity consumption is less than 160 megawatt hours (MWh) per annum.
Are wind turbines eligible to participate in the Solar Bonus Scheme?
Wind turbines up to 10 kilowatts in capacity that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) are eligible for the Solar Bonus Scheme.
Are businesses and community organisations eligible to participate in the Solar Bonus Scheme?
Yes, businesses and community organisations are eligible to participate in the Solar Bonus Scheme as long as they meet the eligibility criteria for the Scheme, such as their solar photovoltaic (PV) system or wind turbine is no larger than 10 kilowatts (kW) in capacity and connects to the electricity network through an inverter (up to 10 kilowatts in capacity) and their average electricity consumption is less than 160 megawatt hours (MWh) per annum.
Can owner’s corporations participate in the Solar Bonus Scheme?
Owner’s corporations may have an account for common power services distinct from individual lots. Owner’s corporations are eligible for Solar Bonus Scheme payments, provided they meet the Scheme’s criteria, for example, they consume less than 160 megawatt hours of electricity per year, have an eligible solar photovoltaic (PV) systems or wind turbine no larger than 10 kilowatts (kW) in capacity that connects to the electricity network through an inverter (up to 10 kilowatts in capacity) which is installed and connected to the national electricity grid on premises that they own or occupy in NSW.
How does the Solar Bonus Scheme apply to tenants and landlords?
Tenants who are responsible for the consumption of electricity at their leased premises may be eligible for the Scheme (provided all Scheme criteria are met). However, tenants will need to check their lease agreement before proceeding to install a generator as the express consent of their landlord will ordinarily be required.
A landlord who does not occupy the premises is unlikely to be eligible for the Scheme where the tenant is responsible for the consumption of electricity at those premises.
Scheme payments
How is the Solar Bonus Scheme tariff rate received? What happens to participating customers’ regular electricity bills?
All electricity retailers are required to provide eligible customers with either a Solar Bonus Scheme credit on their electricity bill or a cash payment representing this amount. How a customer receives their Solar Bonus Scheme benefit is at the discretion of the retailer.
From 1 July 2010 onwards a bill issued to an eligible small retail customer is required to include the amount of electricity supplied to the network during the billing period and the amount to be credited for that electricity. This allows electricity retailers time to ready their billing systems.
Customers should be aware that they may not receive the Solar Bonus Scheme credit and relevant details on their electricity bill until their first bill issued after 1 July 2010.
Will the Solar Bonus Scheme tariff include a GST component?
Customers should seek independent tax advice concerning GST and any other tax matters.
The NSW Government is not able to provide advice as to whether or not particular income or payments are taxable by the Commonwealth Government.
Customers should speak to their accountant or the Australian Tax Office for advice as to whether Solar Bonus Scheme payments are taxable in their particular circumstances. To contact the Australian Tax Office customers can visit http://www.ato.gov.au/ or call 13 28 66 for business tax enquiries or 13 28 61 for personal tax enquiries.
How will the Solar Bonus Scheme tariff affect my pension or other Centrelink payments?
Pensions and other Centrelink payments are managed by the Commonwealth Government, through Centrelink.
On 14 May 2010, in a Media Release by the Commonwealth Minister for Families, Housing, Community Services and Indigenous Affairs, the Commonwealth Government clarified the way feed-in tariffs from household solar panels are assessed for the purposes of the pension income test. The Commonwealth Minister has stated that:
- feed-in tariffs that are paid to pensioners as a credit on an electricity bill will not be assessed as income under the pension income test;
- power sold back to the grid in return for cash, cheque or a direct deposit is counted as income for social security purposes.
For further information on how their pension or other payments may be affected by the Scheme customers should contact Centrelink to discuss their individual circumstances.
Customers should consider their options before deciding to participate in the NSW Solar Bonus Scheme.
To contact Centrelink customers can visit www.centrelink.gov.au or call their regular ’13′ telephone number.
Can I be backdated for electricity generated by eligible renewable energy generators under the Solar Bonus Scheme?
Only electricity generated and supplied by an eligible solar photovoltaic (PV) system or wind turbine, from the Scheme’s commencement onwards, or the date the meter is installed and connected, whichever is the latter, will be eligible for credit under the Solar Bonus Scheme.
Can I install a solar photovoltaic (PV) system or wind turbine up to 10 kilowatts on a neighbour’s roof and receive a credit under the Solar Bonus Scheme?
In order to receive benefits from the Solar Bonus Scheme, eligible customers must install and connect to the national electricity grid eligible solar photovoltaic (PV) systems or wind turbines no larger than 10 kilowatts (kW) in capacity that connect to the electricity network through an inverter (up to 10 kilowatts in capacity) at premises that they own or occupy in NSW.
How much does a solar photovoltaic (PV) system cost?
You should seek independent advice on the actual costs of a system.
How much does a solar photovoltaic (PV) system generate and how are my Solar Bonus Scheme payments calculated?
Solar PV electricity generation will vary between any two individual installations depending on various factors including:
- Cell and panel efficiency
- Inverter efficiency
- System size
- Angle and aspect of installation (eg north facing)
- The extent to which trees, buildings or other features shade your panels
- Cloud cover
- Daylight hours
It is recommended that you seek advice from your system installer about the generation rates for your solar PV system.
Generation rates will affect your payments under the Solar Bonus Scheme. Your payments under the Solar Bonus Scheme can be calculated by multiplying the number of kilowatt hours exported by your solar PV system to the electricity network by $0.20.
