Commonwealth of Australia Explanatory Memoranda

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RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2010

                                  2008 - 2009 - 2010




         THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                                       SENATE




      RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2010




               SUPPLEMENTARY EXPLANATORY MEMORANDUM



                Amendments to be Moved on Behalf of the Government




(Circulated by authority of the Minister for Climate Change, Energy Efficiency and Water,
                   Senator the Honourable Penelope Ying Yen Wong)
     RENEWABLE ENERGY (ELECTRICITY) AMENDMENT BILL 2010
OUTLINE
This amendment to the Renewable Energy (Electricity) Amendment Bill 2010 (the Bill) will allow
for the Solar Credits multiplier for small generation units to be reduced in circumstances specified
by the regulations.
The intention of the Solar Credits multiplier was to provide support to households and others
installing small generation units such as solar photovoltaic (solar PV) systems, to contribute to
lower greenhouse gas emissions in the electricity sector.
The intent was also that recipients of Solar Credits make a financial contribution towards the cost of
their solar PV system. This amendment gives effect to this principle. The intent is that there would
be a requirement in the regulations for small generation unit price information to be provided to the
Renewable Energy Regulator. The Solar Credits multiplier could be reduced prospectively in
circumstances to be set out in the regulations if the Renewable Energy Regulator determines there is
systemic evidence of solar PV panels being offered at a level where there is a relatively small or no
out-of-pocket expense.
FINANCIAL IMPACT STATEMENT
This amendment will not have a financial impact for the Commonwealth.




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                            SCHEDULE 1 - AMENDMENTS

Item 1 - 119A Subsection 23B(2)

1. This item inserts a new item 119A in the Bill that amends subsection 23B(2) of the Act to insert
   the words "a number that does not exceed" before the words "multiplied by". This will allow for
   regulations to be made to apply a lower Solar Credits multiplier in certain circumstances.




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