Federal Rebate Overview
REBATE 1: Renewable Energy Certificates (RECs)
Put simply RECs or Renewable Energy Certificates are like credits.
The Federal Government instituted this system of credits to increase the amount of electricity generated by renewable sources. Each REC credit represents a saving of one megawatt of electricity generated from fossil fuels over 10 years. A REC for a solar or heat pump water heater is the equivalent of 1 MWh of renewable energy produced, or non-renewable energy displaced over ten years.
Much like the value of a share, the value of a REC is market sensitive and subject to change.
The owner of a solar or heat pump water heater may be eligible to generate RECs if it displaces fossil fuel electricity to heat water. Once generated, RECs can be traded, purchased or sold, thereby making the purchase of a solar or heat pump hot water system more affordable for the homeowner.
The amount of RECs awarded to a hot water system is based on the efficiency of the system and the climate zone you live in. Put simply, the more efficient the system the higher the number of RECs awarded.
When you use the Rebate-A-Meter to calculate your rebate, it will automatically work out how many RECs you are entitled to based on the information you provide.
RECs Eligibility
To be eligible to claim the Renewable Energy Certificates (RECs) rebate for a new solar or heat pump hot water system the criteria below must be met. It is worth noting that both first time installs and replacements in existing homes can be eligible.
- The person claiming must be the owner of the system at the time of install
- The solar hot or heat pump hot water system being purchased must be a complete model, which is listed in the ‘Register of Solar Hot Water Heaters’ found on the ORER website below
- The rebate must be claimed within 12 months of installation completion
For comprehensive information on Renewable Energy Certificates and eligibility criteria, visit the website of ‘The Office of Renewable Energy Regulator’ Click here
Click here to download a RECS claim form
REBATE 2: Federal Government $1600 or $1000 Rebate
The Federal Government provides a further rebate of $1600 for the installation of solar or $1000 for heat pump hot water systems to replace existing electric storage systems, in existing eligible homes. New home construction is specifically excluded. The rebate is offered for eligible systems installed on, or after 3 February 2009 until March 2012. The intention is to pay correctly received applications within 60 days directly into a nominated bank account. This rebate cannot be debited at the point of sale nor can a retailer, installer or commercial business apply for the rebate on behalf of their customers.
Eligibility
To be eligible to claim this rebate the new solar or heat pump hot water system must:
- Replace an existing electric storage hot water system
- Be a solar or heat pump hot water system eligible for at least 20 RECS
- Be purchased and installed after the announcement date (3 Feb 09)
- Installed in a new home that is eligible to receive the rebate under the Victorian Bushfire Appeal Destroyed Homes Fund
The dwelling where the new hot water system is being installed must:
- Be a principle place of residence
Any applicant will NOT be eligible to receive the Solar Hot Water rebate of $1600 should they have already received or be applying for the new ‘Insulating Australian Households Rebate’. This Government rebate is offered to homeowners for installing wall and ceiling insulation in an existing home.
For rental properties either the tenant or the owner may apply. Applicants only have 6 months from the installation date to apply and must attach a copy of the receipt
This website provides the main eligibility criteria but it is recommended you reference the full criteria which can be found at the following website.
Click here to download the Federal Government’s Rebate form.
Installs Completed Before 3rd February 2009
For any installs that were completed prior to 3 Feb 2009, the eligible rebate amount was $1000. This can still be claimed as long as:
- the application is made within 6 months of install completion
- the applicant and their spouse had a net taxable income of less than $100,00 in the 2007/2008 tax year
To access the application form, click here
|