The Victorian Government has announced that it will offer half priced solar panels to 650,000 households over the next 10 years.
This scheme, known as The Solar Home scheme, is currently valued at $1.24 billion and is open to owner-occupied homes with:
- A combined household income of less than $180,000 per year; and
- A home value of up to $3 million.
Households who are unable to install solar panels can instead choose to get a $1,000 rebate by changing their current hot water system to a solar hot water system. The solar hot water rebate is open to up to 60,000 homes.
How will this impact the market?
2017 had the highest rate of installation of rooftop solar and 2018 is on track to break this record. The additional demand created by the Victorian scheme could increase the number of certificates, and therefore the obligation for retailers to purchase certificates. This cost is likely to be passed through to consumers. In the short term, it could put downwards pressure on the certificate prices, however any reduction will be short lived as the Clean Energy Regulator adjusts the surrender target, matching demand with supply.
If you would like to understand how this may impact your portfolio please contact Edge on (07) 3905 9220 or 1800 334 336.
