Create Solar VEECs for nearly all mid-scale solar projects (200kW to 5MW) instead of annual creation of LGCs
The Victorian Energy Upgrades (VEU) Program is a VIC Government initiative that helps Victorians cut power bills and reduce greenhouse gas emissions by giving households and businesses access to discounted energy-efficient products and services. Limitations lifted in December 2020 mean that most business installing mid-scale solar (200kw – 5MW) behind the meter will have a substantially higher ROI using VEECs rather than LGCs. LGCs are registered under the Renewable Energy Target. This approach can also be used for other mid-scale wind, renewable energy, and bioenergy projects.
The VEEC value is 2.5 higher than LGCs and realised in 16 months not over a 10-year period
Northmore Gordon is an Accredited Provider under the VEU. Solar VEECs are created using the VEU Project-Based Activity (PBA). The VEU PBA uses a measurement & verification (M&V) methodology that measures and models the energy usage onsite and calculates the grid Electricity or gas savings or both. More resulting from the solar PV system. The modelling determines the energy usage against sites primary production outputs (different for each business) and solar irradiance. Northmore Gordon is the industry leader in Project-Based Activities.
What we'll be covering
What are Solar VEEC rebates worth?
Here is a couple of examples for systems commissioned by 31st of January 2022.
- A 500 kW Solar PV systems for factory or warehouse running 5 days per week with 90% self-consumption on weekdays – weekend and excess energy exported to the grid:
– VEEC Value $130,000 vs Large-scale Generation Certificate under the Australian Renewable Energy Target. More Value: $68,000
- A 1.25 MW Solar PV system used in site with 7 days per week full onsite consumption (eg a shopping centre, a coldstore, or a factory with continuous production).
– VEECs: $520,000 vs LGCs: $170,000
- The VEEC value is higher if commissioned by 31st July this year
The benefit of the VEECs far outweighs the value of LGCs. In addition, it is possible to claim the first 100kW under the Small-scale Technology Certificate under the Australian Renewable Energy Target. More if implemented first as a separate system. Given the value of the VEECs today there isn’t as much benefit in taking that approach and it is simpler to build the system all in one go.
- 750 kW System with 5.5 days per week self-consumption and 10% during that period exported.
- The other 1.5 days is fully exported to the system.
- VEEC payments are just on $250,000 whilst LGCs net $125,000 over 10 years and a NPV of $100,000.
The paybacks differ depending on your location, available incentive(s) and power generated. Talk to us about unlocking incentives and which rebates are right for you.
System Eligibility for Solar VEECs
To claim Victorian Energy Efficiency Certificates (VEECs) for a new mid-scale solar installation, you must:
- Be an existing facility based in Victoria that has been operating the site for over twelve months
- Will not claim LGCs or Small-scale Technology Certificate under the Australian Renewable Energy Target. More for the new solar system from the Renewable Energy Target
- Planning to install a new system size between 200 kW and 5 MW solar panel capacity
- Consume the bulk of the solar energy onsite (VEECs are based on Electricity or gas savings or both. More from the grid)
- Not be excluded by the SAP / EREP register (some large energy-users are excluded)
- Must be registered with the regulator through Northmore Gordon BEFORE construction commences
- Provide details of how energy is consumed onsite for Northmore Gordon to model the grid energy savings
Process and Timelines for Solar VEECs
Northmore Gordon will work through the following process to claim VEECs from mid-scale solar PV systems:
- Approval of the project to the program regulator BEFORE construction commences
- Modelling of the baseline energy usage is performed (using 12 – 24 months of pre-upgrade data)
- Solar installer performs construction and grid connection of the PV system
- Twelve months of operating data is collected (along with production outputs)
- Modelling of the upgraded energy usage is compared to baseline to calculate the grid Electricity or gas savings or both. More
- The quantity of VEECs registered is based on the MWhs of energy saved for the next 10 years converted into tonnes of CO2. 1 VEEC = 1 Tonne of CO2 abated
- VEECs are sold to Energy Retailers to meet their obligations under the VEU
- Payments are made to the end-customer or to the entity providing the Solar system
Still Looking For Something Else?
If you’re located outside of Victoria, or need more information on your options for Large-Scale Generations Certificates (LGCs) under the Renewable Energy Target, have a look at our large-scale system page.
Applicable Building / Sites
- Commercial Buildings
- Industrial Sites
- Small/Medium Businesses
Hamish McGovernGroup Commercial Director
Hamish is driven by innovation and a challenge. With over 5 years in energy efficiency and more than 20 years in IT, he has constantly searched and found new and better ways of doing things.Contact Hamish
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- The Clean Energy Regulator is the Australia Government body responsible for accelerating carbon abatement for Australia through the administration of the National Greenhouse and Energy Reporting scheme, Renewable Energy Target and the Emissions Reduction Fund. Small-scale Scheme
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Frequently Asked Questions
Are solar VEEC rebates still available?
Depending on what state you are in will depend on what upgrades and incentives you have access to. Talk to us about what options and programs are best for your next energy eficiency project.
How do you qualify for a solar VEEC rebate?
To qualify for a solar incentive your PV system must: – use approved panels and inverters – use a Clean Energy Council (CEC) accredited designer and installer – have a capacity less than 100kW
What types of incentives can I get for Solar PV?
In Australia there are a number of incentives available for Solar PV: – The federal Small Scale Renewable Energy Scheme that created tradable Small-scale Technology Certificate under the Australian Renewable Energy Target. More – State rebate programs such as Victorian Solar Homes – Feed in Tarifs from your electricity retailer. There may be other local incentives for solar in your area and you may be able to access more than one financial incentive to reduce the cost of your system.
How do I apply for a Victorian Solar Homes rebate?
How do I start the process of claiming energy certificates?
In you are a solar installer, talk to Northmore Gordon today about how we can help you access the various financial incentives on offer for solar PV installation.
What is Solar Panel Validation?
Solar Panel Validation (SPV) Initiative is a tool developed by the The Clean Energy Regulator is the Australia Government body responsible for accelerating carbon abatement for Australia through the administration of the National Greenhouse and Energy Reporting scheme, Renewable Energy Target and the Emissions Reduction Fund. to give consumers a way to validate PV panels and confirm they: – have manufacturer warranties – meet Australian Standards for quality and performance – are eligible for Small-scale Technology Certificate under the Australian Renewable Energy Target. More By participating in the SPV initiative we are able to offer faster turnaround times and better pricing for your STCs.
Northmore Gordon partners with businesses involved in solar upgrades who wish to access the energy efficiency incentives under the state-based schemes.
Northmore Gordon partners with both energy efficiency installation companies, electricians, equipment suppliers and end businesses performing upgrades.