Solar energy has gained quite a momentum in the last few years. And with the abundant sunlight, Australia has always remained at the forefront of embracing solar energy solutions.
Although solar energy is undoubtedly one of the best alternatives for Australian households, the high price investment at the installation phase is something not everyone is ready to pay. That’s where rebates, incentives and grants for solar installation come in to rescue.
With the right rebates, you can make your solar installation more affordable and contribute towards a greener environment. But does this means you will get free installation, or how can you get any available solar installation rebates?
To clear your doubts, we have prepared this mini guide that will discuss solar energy incentives and rebates available in Australia, and help you save money on solar installation.
Simply put, solar rebates are financial reimbursements given by the government to you when you install solar panel systems at your place. The federal government introduced these schemes to encourage individuals and businesses to switch to solar energy without worrying about paying hefty grid power bills.
With solar installation rebates, you can efficiently pay off the solar panel cost. This makes it a cost-effective solution for homeowners and leading businesses to the expansion of solar energy in Australia.
With the growing adoption of solar panels, government rebates and incentives have changed and reduced with time. However, you can still find profitable schemes which will benefit you when you transition to solar energy.
Currently, there are two types of solar rebates available in Australia.
1. Small-scale Renewable Energy Scheme (STES).
It is the most promising initiative by the government for encouraging individuals to install panels on their property and earn small-scale technology certificates (STCs).
These certificates carry a price that you can earn by selling them back yourself or through your installer to get a reduction in installation cost. Generally, the value of these certificates relies on the amount of renewable energy your new system generates until its lifetime. So once you get approval on your purchased system, you can become eligible for STCs.
2. Feed-in Tariffs
Feed-in tariffs are another main financial incentive run by the government in Australia. It offers a few cents in exchange for each extra kilowatt-hour of unused electricity that your system generates and later gets exported to the power grid. However, these rates differ with each state. So look for the solar panel rebate available for your area.
The amount of money that you will save through rebates depends on the number of STCs, and the price of these certificates relies on:
Generally, when you receive the quote for your new solar panel installation, the installer will mention the calculation of the number of STCs you will get and the money you will get back on your upfront cost.
For instance, a 6.6kW system generates around 60 to 80 STCs, each STC valuing around $35–40. It means you can earn thousands on your new installation.
Apart from the STCs scheme available for every new solar panel installer, there are some state-based rebates for additional savings.
1. Victoria solar rebates
Under the current rebate scheme by the Victorian government, you will receive up to $1,400 on solar panel installation as the owner of the home or rental property. Also, you get the option of an interest-free loan of up to $1,400 with the need to reply over four years.
However, to apply for this solar rebate in Victoria, you must meet the following criteria:
2. ACT solar rebates
The ACT pensioners get up to 50% subsidy on the total amount of rooftop solar systems (with a maximum of $2500) under Home Energy Support Program.
Under a sustainable household scheme, the customers can opt for a zero-interest loan from $2000 to $15,000 with a ten years loan period.
3. NSW solar rebates
Under a new rebate scheme by the NSW government, a 3kW solar system is offered to low-income house owners for free. So if you want to get this financial incentive in NSW and already receive Low Income Household Rebate (financial help to pay your electric bills), you can be eligible for it if you have a Department of Veterans Affairs Gold Card or a Pensioner Concession Card.
To apply for government solar grants in Victoria or any other Australian state, you first need to:
The Australian government has always encouraged individuals to switch to solar energy for their households and individuals through rebates, grants and incentives. But with the numerous solar brands using it like it’s completely free, it gets confusing to understand what these rebates mean.
We hope all the points discussed above helped to under the various solar panel rebates, grants and incentives and how much money they can save you.