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Amendment to the Renewable Energy Method for Solar Water Heaters Determination 2016

23 December 2021

The Clean Energy Regulator (the agency) would like to advise all registered agents and persons that an amendment has been made to the Renewable Energy (Method for Solar Water Heaters) Determination 2016.

This amendment will come into effect on 1 January 2022 and was required to clarify the method used to calculate Small-scale Technology Certificates (STCs), to reflect the reduced deeming period which also comes into effect on 1 January 2022.

The updated determination can be accessed via the Federal Register of Legislation.

The agency has made this amendment as the modelling prescribed to calculate STCs under the Renewable Energy (Method for Solar Water Heaters) Determination 2016 did not account for the reduced deeming period required under the Renewable Energy (Electricity) Regulation 2001.

The deeming period for solar water heaters as well as solar PV systems decreases by one year for all systems installed after 1 January 2022 as outlined on the deeming period decline page. For systems installed in 2022 the deeming period is a maximum of 9 years.

The amendment will take the number of STCs claimed under the current method as is recorded in the Registry of Solar Water Heaters and the agency will apply the deeming period for the equivalent year as prescribed in the table below. This method was chosen as it did not place any additional burden on industry to recalculate each model on the Register each year to account for the deeming period.

As an example, if the system is installed in 2022 and the displaced energy a solar system creates is 4.32 megawatt hours per year (MWh/y), the manufacturer multiplies by 10 to get 43.2 and then rounds down to 43. This is the number currently recorded in the Register of Solar Water Heaters. The agency will then automatically multiply by 0.9 (the factor for the 2022 deeming period) 38.7 and then round down to a whole number 38.

Reduction factor
ItemYear large SWH installedFactor
120220.9
220230.8
320240.7
420250.6
520260.5
620270.4
720280.3
820290.2
920300.1

The solar water heater STC calculator reflects the upcoming deeming period decrease to help industry calculate the number of STCs, that a solar water heater may be eligible for from 2021-2030.

Please visit our website for more information regarding expected capabilities and standards for agents and document and eligibility requirements for STC creation.




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