Solar Credits Multiplier To Reduce From 2 To 1

16 Nov 2012

Solar Credits multiplier to reduce from 2 to 1

The Federal Government announced late this morning that it will reduce the Solar Credits multiplier from 2 to 1 on 1 January 2013. This will effectively phase out the Solar Credits mechanism.

The government’s media release is available here.

We have confirmed that the implications for solar PV companies are as follows:

  • Any agreement to install a solar PV system that was entered into before today (16 November) will be eligible for the existing Solar Credit multiplier of 2. This includes:
    • a legally binding contract
    • written agreement
    • Statutory declaration confirming verbal agreement.
  • If an agreement was entered into prior to today, you will have until 30 June 2013 to install the solar PV system under the existing multiplier.
  • The same applies to all systems installed before 1 January 2013.

The phasing out of the Solar Credits program was due to occur on 1 July 2013, so today’s announcement has brought that forward by six months.

The CEC is preparing a media release to send out in response to the announcement, and will keep all members and installers informed as more information comes to light.