Now that SRES has been saved, what does it mean for the solar industry?
It has been recently confirmed that the SRES will remain until 2030. In fact, in an interview on the 24th of October with Guardian Australia political editor Katharine Murphy with energy minister Angus Taylor, it was confirmed that the labor government has no plan to abolish or change Small-scale Renewable Energy Scheme (SRES). This is good news for everyone who are considering installing solar soon, but what does it really mean for the solar industry overall?
Homeowners and Small Businesses
Homeowners and small businesses who use solar are the number one beneficiary of the non-abolition of SRES. For many years, it has helped users to be eligible for a financial incentive to install small-scale renewable energy systems such as rooftop solar systems, small-scale wind systems, small-scale water heater system and air source heat pumps. This works with small-scale technology certificates or STCs that can be sold to Energy Target liable entities on a particular rate. STCs are offered up front for a system’s expected power generation (based on its installation date and geographical location) until the point that the SRES terminates in 2030.
According to Renewable Energy Target fact sheet, it will cost every Australian family over $50 more for electricity in 2020 if the Renewable Energy Target is abolished. The total expense would be a large portion of a billion dollars additional for electricity in 2020 and up to $1.4 billion additional each year if schemes are removed.
More than giving financial benefits to small-scale renewable system users, SRES also secures the public under the program to have a safer installation as it is designed and installed by a Clean Energy Council (CEC) accredited installer who are trained to comply with relevant Australian and international requirements while maintaining high safety and quality standards.
Solar business mostly depends on the reception of the customers with regards to the non-abolition of the scheme because they are the main reason of its existence. In this case, customers are glad about the scheme and it motivates them to completely choose clean energy.
With the help of CEC, solar businesses can also be sure that installers are knowledgeable enough to install only the approved products under CEC and remove lower-quality products in Australian market. This is a big help of securing the public and gain their trust and confidence on solar since Australia does not have a national authority or agency responsible for electrical safety.
According to Federal Government, $400 will be saved on electricity bills from 2020 to 2030 due to new renewable investment under the RET. The Renewable Energy Target will generate approximately 8700 jobs in household systems such as solar power and solar hot water.
From giving Australian households the capacity to install renewable systems, creating more jobs and saving a lot of money from electricity, SRES has been creating outstanding results since it was launched in 2001. This is an obvious evidence that the policy is working great in the Australian market and an essential part of Australian solar industry’s future.
Want to see more article likes this? Subscribe to our mailing list using the form below.
Clean Energy Council (2018, August 15). Why is the Small-scale Renewable Energy Scheme important to the Australian solar industry?. Retrieved from https://www.cleanenergycouncil.org.au/news/2018/August/why-is-the-sres-important-to-australian-solar-industry.html
Clean Energy Council (n.d.). Renewable Energy Target. Retrieved from https://www.cleanenergycouncil.org.au/policy-advocacy/renewable-energy-target.html
Clean Energy Council (n.d.). Renewable Energy Target policy analysis. Retrieved from https://www.cleanenergycouncil.org.au/policy-advocacy/renewable-energy-target/ret-policy-analysis.html