Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au F2018L00588 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Authorised by the Clean Energy Regulator

Renewable Energy (Electricity) Regulations 2001

Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018

Introduction

The Renewable Energy (Electricity) Regulations 2001 (the “REE Regulations”) facilitate the objectives of the Renewable Energy Target (“RET”) scheme.

The REE Regulations have been amended with effect from 1 July 2018.  The relevant amendments repeal Schedule 5 of the current REE Regulations and empower the Clean Energy Regulator (the Regulator) to make this instrument. 

Subregulation 20(4) of the REE Regulations provides that the Regulator may prescribe zone ratings for solar (photovoltaic) systems, and zones, for the purposes of paragraph 20(1)(b) of the REE Regulations. Section 4(2) of the Acts Interpretation Act provides that an instrument may be made prior to the commencement of the relevant authority.

Purpose and operation of the instrument

Under the RET, solar panel systems installed according to requirements of the Small-scale Renewable Energy Scheme are eligible for small-scale technology certificates. The number of certificates that a solar system is eligible to create is calculated using postcode groupings as a proxy to estimate the amount of solar radiation in a particular region.

The postcode groups (referred to as “solar zones”) were previously published in Schedule 5 of the REE Regulations. Item 8 of Part 2 of Schedule 2 to the Renewable Energy (Electricity) Amendment (Exemptions and Other Measures) Regulation 2017 repeals Schedule 5 of the REE Regulations with effect from 1 July 2018.

This instrument sets out the zone ratings for solar (photovoltaic) systems and zones. The instrument effectively replaces the repealed Schedule 5. The postcode zones and ratings in this instrument are identical to those set out in the repealed Schedule 5. Subsequent instruments may amend or add zones and ratings. 

Documents incorporated by reference

This instrument does not incorporate any documents by reference.

Consultation

The Department of Environment and Energy released an exposure draft of the Renewable Energy (Electricity) Amendment (Exemptions and Other Measures) Regulations 2017 in October and November 2017 for public comment. The exposure drafts included the amendments allowing the Regulator to prescribe zone ratings and zones by legislative instrument. One submission was received by the Department that identified a minor typographical error in the proposed amendment to paragraph 20(1)(b).   

As this new instrument does not alter existing solar zone ratings and zones, no additional consultation was undertaken in preparing this instrument.

Regulatory impact assessment

The Office of Best Practice Regulation (“OBPR”) has advised that a Regulatory Impact Statement is not required (OBPR ID: 23681). Further, OBPR has agreed that the proposal does not change the regulatory costs on business, community organisations or individuals.

ATTACHMENT A

Details of the Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018

  1.  Name of Instrument

Section 1 provides that the title of the Instrument is the Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018.

2.       Commencement

Section 2 provides that the Instrument commences on 1 July 2018.

3.       Authority

Section 3 provides that the Instrument is made under subregulation 20(4) of the Renewable Energy (Electricity) Regulations 2001.

4.       Zone ratings

Section 4 sets out the zone ratings for solar (photovoltaic) systems depending on where they are installed.

5.       Zones

Section 5 sets out the zones for postcodes where solar (photovoltaic) systems are installed.

 

 

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the instrument

The Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018 sets out the zone ratings for solar (photovoltaic) cells, and zones based on postcode groupings.

Human rights implications

This Legislative Instrument does not engage any of the applicable human rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

 

Overview

The Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018 was enacted to establish zone ratings and zones for solar (photovoltaic) systems, replacing the previous Schedule 5 of the Renewable Energy (Electricity) Regulations 2001, which was repealed with effect from 1 July 2018. The instrument is designed to facilitate the objectives of the Renewable Energy Target (RET) scheme by enabling the Clean Energy Regulator to prescribe zone ratings and zones under subregulation 20(4) of the Renewable Energy (Electricity) Regulations 2001. The postcode groupings used in this instrument serve as a proxy to estimate the amount of solar radiation in specific regions, thereby determining the number of small-scale technology certificates eligible for solar panel systems installed according to the requirements of the Small-scale Renewable Energy Scheme. This regulatory amendment ensures the continued smooth operation of the RET scheme by providing updated and accurate solar zone ratings and zones.

Scope and Application

The Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018 applies to solar photovoltaic systems installed in Australia under the Small-scale Renewable Energy Scheme, as facilitated by the Renewable Energy (Electricity) Regulations 2001. The instrument is applicable nationwide, impacting all solar photovoltaic systems eligible for small-scale technology certificates. The instrument does not apply to other types of renewable energy systems or installations that do not fall under the Small-scale Renewable Energy Scheme. This legislative instrument was developed under the authority provided by subregulation 20(4) of the Renewable Energy (Electricity) Regulations 2001, which empowers the Clean Energy Regulator to prescribe zone ratings and zones for solar photovoltaic systems. The instrument does not incorporate any external documents by reference, and it has been determined by the Office of Best Practice Regulation that a Regulatory Impact Statement is not required, as it does not alter existing regulatory costs or obligations on businesses, community organisations, or individuals. The instrument sets out specific zone ratings and zones for solar photovoltaic systems based on postcode areas to estimate solar radiation levels, replacing the previously repealed Schedule 5 of the Renewable Energy (Electricity) Regulations 2001.

Key Provisions

The Renewable Energy (Electricity) (Zone Ratings and Zones for Solar (Photovoltaic) Systems) Instrument 2018 sets out specific provisions that apply to solar (photovoltaic) systems installed in Australia. Section 4 of the Instrument (Section 4) specifies the zone ratings for solar (photovoltaic) systems, which are determined based on the postcode of the installation location. These ratings are essential for calculating the number of small-scale technology certificates that the system is eligible to generate. Similarly, Section 5 of the Instrument (Section 5) delineates the zones by postcode, which are used as a proxy for estimating solar radiation levels in different regions. These provisions ensure that solar systems are appropriately rated and zoned for the purposes of the Small-scale Renewable Energy Scheme under the Renewable Energy Target. The Instrument imposes certain obligations on entities involved in the installation and operation of solar (photovoltaic) systems. For instance, installers and operators must ensure that the systems are installed in accordance with the specified zone ratings and zones to be eligible for small-scale technology certificates. Additionally, these entities must maintain records and documentation that reflect the correct zone ratings and zones for the systems they manage. Failure to comply with these obligations could result in a system not being eligible for the appropriate number of certificates, which could have financial implications. Breaches of the provisions set out in the Instrument can result in various consequences. While the Instrument itself does not explicitly outline specific penalties, any non-compliance with the Renewable Energy (Electricity) Regulations 2001 could lead to enforcement actions by the Clean Energy Regulator. The Regulator may take steps to ensure compliance, which could include issuing notices, requiring corrective actions, or pursuing legal remedies. Given the potential financial implications of incorrect certification, entities are strongly encouraged to adhere to the specified zone ratings and zones to avoid any adverse consequences.

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