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Prime Minister’s Exemption–Phase Out of the Solar Credits Mechanism – Department of Climate Change and Energy Efficiency

On 16 November 2012, the Minister for Climate Change and Energy Efficiency announced the phase out of the solar credits mechanism on 1 January 2013, six months earlier than scheduled. The phase out is designed to lower the impact of the high uptake of solar photovoltaic on electricity costs for homes and businesses. This announcement follows two previous decisions to reduce the solar credits multiplier under the Small-Scale Renewable Energy Scheme. Both decisions were non-compliant with the best practice regulation requirements. Post-implementation reviews are required within 1–2 years from the implementation of the regulations, and are due to be completed in April 2013. A Regulation Impact Statement was also required for this proposal but the Prime Minister granted an exemption on the basis of exceptional circumstances.  A post-implementation review will be required within 1–2 years of its implementation.