Solar Credits

• Solar Credits multiplies the number of STCs the system is eligible for.
• Solar Credits applies to the first 1.5kW of a system and certain criteria must be met to be eligible.
• The current Solar Credits multiplier is as follows.

Installation Period	Multiplier
1 July 2010 - 30 June 2011	5 x [number of eligible STCs]
1 July 2011 - 30 June 2012	3 x [number of eligible STCs] *
1 July 2012 - 31 December 2012	2 x [number of eligible STCs]
1 January 2013 - onwards	1 x [number of eligible STCs] ** (ie no multiplier)

* unless contracts made on the basis of a multiplier of 4 were entered into prior to 5 May 2011, in which case the multiplier of four (4) may apply. See Transitional Arrangements for more detail.
** unless contracts made on the basis of a multiplier of 2 were entered into prior to 16 November 2012, in which case the multiplier of two (2) may apply. See Transitional Arrangements for more detail.

• Solar Credits are not means tested.
• Solar Credits apply to the first 1.5 kilowatts (kW) of capacity installed at an eligible premises (see below) OR to the first 20kW of capacity for an eligible off-grid system.
• Generation from capacity above 1.5 kW or 20kW (for eligible off-grid systems), will still be eligible for the standard 1:1 rate of STC creation.
• Solar Credits apply to all SGUs, including solar, wind, and hydro installations.

If you are installing an eligible off-grid small-scale system, it may be eligible for Solar Credits over and above those applicable to grid-connected systems.

The small-scale solar panel, wind or hydro system must comply with all eligibility criteria before it is entitled to Solar Credits.

• The unit is installed at an eligible premises (see below) between 9 June 2009 and 30 June 2014;
• At the time the unit is installed, there is no pre-approval or funding agreement in force under the Solar Homes and Communities Plan (SHCP), the Photovoltaic Rebate Program (PVRP), the Renewable Remote Power Generation Program (RRPGP), or the National Solar Schools Program (NSSP) and no financial assistance has been provided in respect of the unit under the SHCP, the PVRP, the RRPGP or the NSSP;
• At the time the unit is installed, financial assistance under the Solar Homes and Communities Plan (SHCP), the Photovoltaic Rebate Program (PVRP), the  Renewable Remote Power Generation Program (RRPGP) or the National Solar Schools Program (NSSP) has not been approved or provided in respect of any other SGU at the same location;
• The small-scale solar panel, wind or hydro system is a new and complete unit. A unit is complete if:
  • it is capable of generating electricity in a form that is usable at the eligible premises where it is installed without the need for an additional part or parts to be added to or incorporated into the unit.
  • it is wired directly to the premises where it is installed, so that its output is capable of being metered at the premises or the unit includes a meter that is dedicated to measuring its electricity output.
• At the time of STC creation in the REC Registry, Solar Credits have not been claimed on any previous set of certificates created for the same unit – for example, on certificates submitted for previous deeming periods (only applicable if you have chosen 1 or 5 year deeming periods).  STCs for subsequent deeming periods are created at 1:1 value.

Summary of eligibility requirements for Solar Credits

Installation Period	Certificate validation period	LGC or STC?	What multiplier will I receive?	Requirements to receive multiplier
9 June 2009 - 31 December 2010	Any time within 12 months from installation date	LGC	5	Standard eligibility requirements apply
1 July 2010 - 30 June 2011	Any time within 12 months from installation date	STC	5	Standard eligibility requirements apply
1 July 2011 – 30 June 2012	Any time within 12 months from installation date	STC	4	Standard eligibility requirements apply PLUS * Have documents showing evidence of contract entered into before 11:59pm Wednesday May 4 Provide signed statutory declaration/s to the Clean Energy Regulator regarding required documents and existence of contract
1 July 2011 - 30 June 2012	Any time within 12 months from installation date	STC	3	Standard eligibility requirements apply
1 July 2012 - 31 December 2012	Any time within 12 months from installation date	STC	2	Standard eligibility requirements apply
1 January 2013 - onwards	Any time within 12 months from installation date	STC	1	Solar Credits no longer available.
1 January 2013 - 30 June 2013	Any time within 12 months from installation date	STC	2	Standard eligibility requirements apply PLUS* Have documents showing evidence of contract entered into before 11:59pm Thursday 15 November 2012 Provide signed statutory declaration/s to the Clean Energy Regulator regarding required documents and existence of contract

* Subject to requirements outlined on the Transitional Arrangements page.

A summary of the requirements is as follows:

• A contract must have been entered into before 16 November 2012, for the supply and installation of an eligible small-scale solar panel, wind, or hydro system.
• The system must be installed between 1 January 2013 and 30 June 2013.
• A Statutory Declaration must be provided to the Clean Energy Regulator before STCs are created.
• The Statutory Declaration/s must confirm the existence of legally-recognised contract document/s, and your ability to supply copies of the document/s to the Clean Energy Regulator if required.
• STCs must be created within 12 months of the system’s installation.
• The system must comply with all other Solar Credits eligibility requirements.

If your system meets with these requirements, please see the Transitional Arrangements page for the complete compliance requirements.

Complete details are available at Comlaw:

• Renewable Energy (Electricity) Amendment Regulation 2012 (No. 8)
• Explanatory Statement

A summary of the requirements is as follows:

• A contract must have been entered into before 5 May 2011, for the supply and installation of an eligible small-scale solar panel, wind, or hydro system.
• The system must be installed between 1 July 2011 and 30 June 2012.
• A Statutory Declaration must be provided to the Clean Energy Regulator before STCs are created.
• The Statutory Declaration/s must confirm the existence of legally-recognised contract document/s, and your ability to supply copies of the document/s to the Clean Energy Regulator if required.
• STCs must be created within 12 months of the system’s installation.
• The system must comply with all other Solar Credits eligibility requirements.

If your system meets with these requirements, please see the Transitional Arrangements page for the complete compliance requirements.

Complete details are available at Comlaw:

• Renewable Energy (Electricity) Amendment Regulations 2011 (No. 3)
• Explanatory Statement

If you wish to install additional capacity to an existing unit it may be entitled to STCs. Additional capacity is not, however, entitled to the STC multiplier through Solar Credits. To determine the number of STCs the additional capacity may be entitled to, insert the rated power output (in kW) for the additional capacity into the Small Generation Unit Calculator. Note the number of STCs without Solar Credits in the result.

Solar Credits can only be claimed for one small-scale solar panel, wind or hydro system installed at each “eligible premises”. “Eligible premises” is defined in the Regulations to mean any of the following:

• a house (including the land on which the house is located and any outbuildings on the land)
• a townhouse
• a residential apartment
• a shop (including the land on which the shop is located and any outbuildings on the land)
• other premises located at an address

An outbuilding is a detached building subordinate to a main building and is not considered to be an eligible premises in its own right.

If a building is not an eligible premises under the following definitions, any small-scale solar panel, wind or hydro system installed on that building is still eligible to generate standard STCs.

House

A house is an eligible premises. However, the following separate buildings are not eligible:

• a home office located in the house or in an outbuilding on the land where the house is located; or
• a business operated from the house or in an outbuilding on the land where the house is located;

Townhouse, residential apartment

A townhouse, residential flat, unit or apartment is eligible to claim STCs on an installed small-scale solar panel, wind or hydro system.  This includes townhouses or apartments located in a:

• multi-story apartment building; or
• retirement village.

 It does not include a room in a nursing home, hostel or similar assisted living facility.  It also does not include:

• a home office located in the townhouse, residential flat, unit or apartment; or
• a business operated from the townhouse, residential flat, unit or apartment;

Shop

A shop is an eligible premises (except when located in a house, townhouse, residential flat, unit or apartment that is itself an eligible premises – see above).  Each shop in a shopping mall or other multi-shop type complex is an eligible premises.

Other premises located at an address

Business premises (eg factories and offices) 

Each separate business which is located at an address will be a “premises located at an address”, except when located in a house (land or outbuilding), townhouse, residential flat, unit or apartment that is itself an eligible premises.

Some businesses may be located at an address which covers several numbers in a street (e.g. a factory might be at 42-56 Smith Street). In such a situation, there is only one eligible premises.

Alternatively, some businesses will occupy a separate unit at a single street address, where a different business is carried out in the separate units, (e.g. Unit 2 of 56 Smith Street). Each unit is a separate eligible premises.

Specific types of premises 

Each of the following types of businesses are regarded as a single eligible premises:

• a motel, hotel, resort or caravan park.  However, individual room/cabin/villas  etc  in a motel, hotel or resort and each stationary caravan in a caravan park are not separate eligible premises.
• a nursing home, hostel.  Individual rooms in the home or hostel are not a separate eligible premises.
• a hospital
• a restaurant

Community and educational buildings 

• The building(s) located at an address where a community group or institution carries out its activities (including the land on which the building is located and any outbuildings on the land) is a single eligible premises (eg a scout hall, guides hall, sporting club, school, church or other religious building). 
• In the situation where the building(s) is or are used by more than one organisation, there is one eligible premises only.

More than one premises located at a single address

Where more than one separate premises (excluding outbuildings) is located at a single address, all of those premises are separate eligible premises. Examples might include a:

• dairy on a farm that is separate to the residential house on the same farm — both premises are eligible premises;
• owner/manager’s house that is separate to the rest of a caravan park but at the same address — the house is a separate eligible premises to the caravan park;
• green keeper’s house that is separate to the rest of the golf course at the same address  — the house and the business premises are separate eligible premises.

To be another 'eligible premises' at a single address, the premises must be clearly separate from the other eligible premises located at the address (e.g. the house). A building is not an eligible premises if it is an outbuilding associated with a house. For example:

• a garage, studio or other small building situated in close proximity to a house which itself is an eligible premises (where a small business may be carried out) is as an outbuilding and not another eligible premises;
• a larger business premises that is not subordinate to a house which itself is an eligible premises,  and which more commonly is located further from the house than is usual for a garage or studio, is not an outbuilding and therefore is a separate eligible premises.

If you apply for Solar Credits for multiple systems at a single address you must provide evidence of their eligibility for Solar Credits to the Clean Energy Regulator by emailing as much detail as possible including:

• location,
• address,
• boundaries,
• road access,
• title information,
• access to electrical connection and metering,
• ownership,
• occupancy,
• nature of business,
• ABN
• maps
• and other information you may wish to provide.

When the above details have been sent to the Clean Energy Regulator via email you must put a note in the special address field that states the date the email was sent and a description that matches the content that was sent via email.
The Clean Energy Regulator can only validate multiple Solar Credits at a single address when sufficient evidence of separate eligible premises have been provided.

Structures that are not eligible premises

The following structures are NOT eligible premises:

• street lights, street signs, mobile phone towers, sheds, boats, cars and trailers;
• mobile homes, caravans or similar wheeled vehicles not intended to be permanently attached to the land (these are not defined as eligible premises because they do not remain at a location for a long period of time).

If you would like clarification regarding the eligibility of a particular premises, please contact the Small Units Team at the Clean Energy Regulator via email retscheme@cleanenergyregulator.gov.au. Include in your email as much detail as possible including location, address, boundaries, road access, title information, access to electrical connection and metering, ownership, occupancy, nature of business, maps and other information you may wish to provide.

Off-grid small-scale solar panel, wind and hydro systems are defined by subsection 23B(3B) of the Act as:

•  a small-scale solar panel, wind or hydro system installed at least 1 kilometre from the nearest main-grid line or
•  a small-scale solar panel, wind or hydro system less than 1 kilometre from a main-grid line where the owner has provided written evidence from the local network service provider that the total cost of connecting the SGU to the main-grid is more than $30,000.

The following grids are considered to be main-grids:

• National Electricity Market (NEM) grid (Eastern states)
• the Mt Isa grid (Queensland)
• the Alice Springs grid (Northern Territory)
• the Darwin-Katherine grid (Northern Territory)
• the South Western Interconnected System (Perth, Western Australia)
• the North Western Interconnected System (Pilbara, Western Australia)
• the Mount Keith Leinster grid (Western Australia)
• the Gove grid (Northern Territory)
• the Telfer grid (Western Australia)
• the Newman grid (Western Australia).

STC creation and annual caps for eligible off-grid small-scale solar panel, wind or hydro systems

• The system must be installed and fulfil the above requirements before STCs can be created.
• The regulations specify that the cap is determined by the additional STCs that are created in relation to off-grid small-scale solar panel, wind and hydro systems installed in a particular financial year compared to those which would have been created if the 1.5 kW limit applied. STCs which are created but not registered are disregarded for this purpose.
• Accordingly, Solar Credit multiplied STCs included in the tally are for the rated power output between 1.5 kW and 20 kW. If the system is less than 20 kW the STCs can still be multiplied for the rated power output up to 20 kW.
• The tally of cap eligible off-grid small-scale solar panel, wind or hydro system STCs will be published on the Clean Energy Regulator website regularly.
• The tally is available on the Off-grid Tally page.
• The Clean Energy Regulator must assess applications for the off-grid multiplier based on the date certificates are created, i.e first come, first served. This means that the off-grid multiplier is awarded based on the date certificates are created in the REC Registry, not the date the system in installed.
• STCs that are created will be placed in a queue for validation. The Clean Energy Regulator will keep a record of created STCs and ensure that the queue reflects the time of creation. 
• If the validated STCs reach the tally, the STCs that are created for systems installed in that financial year will be eligible for the solar credits multiplier for the first 1.5 kW of capacity installed. As the cap applies to all small-scale solar panel, wind and hydro systems installed in a financial year, there is no ability to delay STC creation to come under the following financial year’s cap if the unit was installed in the previous financial year.
• Agents will be notified via their REC Registry email as soon as possible when the off-grid tally has been reached. If your created STCs are in the queue you will be notified after the date that they have missed out on the additional STCs due to the annual cap being met. These STCs could be valid for the Solar Credits multiplier up to 1.5 kW if the general requirements for Solar Credits are met.
• The annual caps for off-grid SGU STCs are as follows:

Item	Period of small generation unit installation	Number
1	1 July 2010 to 30 June 2011	250 000
2	1 July 2011 to 30 June 2012	250 000
3	1 July 2012 to 30 June 2013	200 000

If the annual cap is equal or exceeded the Solar Credits multiplier immediately applies to the first 1.5W of capacity installed. Generation from capacity above 1.5 kW will still be eligible for the 1:1 rate of STC creation.