The great thing about solar power in Australia, is that more often than not, the government is incentivising the uptake. So if you’re considering solar, get familiar with the rebates and incentives that you could be eligible for. Not only can these incentives assist with the cost of installation, but they can potentially provide ongoing energy bill savings to you, too. Let’s explore some of the key rebates and incentives for solar systems here in Australia.
State-specific rebates and incentives
Most Australian states and territories offer some form of rebate and incentive for solar systems. Victoria offers the Solar Homes Program, while NSW and QLD offer the Small-scale Renewable Energy Scheme (SRES) to households and small businesses that install a solar system, to help with the purchase cost. NSW also offers a rebate swap for solar and energy efficiency upgrades where residents currently receiving an energy rebate may be eligible to swap the rebate for a free 3 kilowatt solar system or energy efficient upgrades. Visit energy.gov.au/rebates for up-to-date rebates and incentives in your state.
Under the Energy Made Easy program, NSW and QLD residents may be eligible for an electricity feed-in tariff. Feed-in tariffs for renewable energy pay for excess electricity generated by small-scale solar photovoltaic (PV) or wind power systems. In other words, a feed-in tariff is a payment made by your electricity provider, for the excess electricity your solar system has generated and fed back into the grid. The amount payable by your electricity provider depends on the amount of electricity fed back into the grid, which also depends on the design and location of your solar system.
Small-scale technology certificates (STCs)
The Small-scale Renewable Energy Scheme (SRES), as outlined above, offers Small-scale Technology Certificates (STCs) within it. STCs are simply a government rebate of which can be claimed after your solar system has been installed. The design of your solar system (e.g. size) and your location both impact the number of STCs you receive – which is determined by the projected amount of energy your system is expected to make over its lifetime. Homeowners and businesses can claim STCs and sell them to electricity retailers or brokers, who use them to meet their own renewable energy targets.
We’ve saved the good news for last – because who doesn’t love an instant asset write-off with the Australian Taxation Office?! With that said, installing a solar system may make you eligible for tax incentives through the ATO. For example, small businesses can immediately deduct the cost of new assets, including solar systems, in their tax returns.
Always conduct your own up-to-date research into rebates and incentives available in your area, and consult with a professional solar provider like us, so we can help you plan the best financing options for your needs.
Want to get started? Call us on 1300 4 SOLAR.