Are You Unaware Of The Solar Panel Rebate?
Many people are actually unaware of the Solar panel rebate scheme in place by the Federal government to help make Solar systems affordable. I hope this blog will shed some light on what those incentives are and what it means for you. At the moment (prices change, which I will explain down the page) you will make a savings of around $700/kW on a Solar system. The typical system that we install is around 3-5kW, that’s $2100-$3500 cash off the cost of your solar system!
Even more good news is the Government has just passed the review to keep this scheme in place until at least May 2017. Bring on the Solar revolution! But unfortunately the amount you will get back per kW is dependent on self-regulation, which means if the Solar industry runs hot, the value of the “rebate” goes down in step with a thing called the “STC Price”. The STC price can be valued from $0 – $40, so when you’ll be making the biggest savings are when the STC price is at it’s highest, which is now!
At the time of writing this blog they’re fetching $39.90 each, which is basically as high as it can go. So to make the most of this high price, like they say “there is no time like the present”. Call now for more info on a Solar panels price.
If you’re thinking about Solar you should contact us for a no-obligation Energy Audit of your home or business. We can help explain any questions you have about how Solar works and provide information on other energy saving tips and tricks.
The Solar panel rebate is not really a rebate as such…..
It is actually called the STC program, which stands for Small-scale Technology Certificate. The government says it should not be called a “solar rebate”.
A statement from the Clean Energy Regulator website:
Under the Small-scale Renewable Energy Scheme the reduction in the cost of your solar panel is not a rebate. You will not qualify for any Government-based financial recompense at the completion of any process relating to STCs.
The solar rebate Financial Incentive subsidises the upfront cost of installing a Solar Power System and is not means tested in any way. The only criteria for claiming it are:
- Your system is less than 100kW in size.
- You get it installed and designed by a Clean Energy Council accredited professional.
- You use panels and inverters that are approved for use in Australia by the Clean Energy Council.
Note: Do not confuse this ‘rebate’ with the Feed In Tariff (FiT). The FiT is a State Government subsidy in which some states pay you for the electricity that your solar system will export to the grid
How the Solar Rebate Financial Incentive Works
The Solar Financial Incentive has been figured out in a way that actually costs the government very little. Here’s the scheme in a (8 part!) nutshell:
- The government creates pieces of paper called Renewable Energy Certificates (RECS).
- The government mandates that the filthy fossil fuel generators have to either build a certain amount of renewable generation (wind/solar) or buy the right to other people’s renewable energy systems in the form of RECs.
- When you go and buy a solar power system for your roof, the government gives you a certain number of RECS depending on how big your system is and how much sun your part of Australia gets.
- The special type of RECs that you get for a residential solar system are called “Small Scale Technology Certificates” (STCs).
- You (or more likely your installer) sell the STCs to the filthy fossil fuel generators and use the cash to offset the upfront cost of the solar system purchase.
- The STC price is a bit like a share price – it fluctuates on the open market depending on supply and demand. E.g. when the solar industry is booming (usually just before the rebate is cut!) then the STC price drops and vice versa.
- The current STC price at time of writing is about $39. You can see the current market price of a STC here. Look for the number in the box in the bottom RH corner labelled: STC.Almost all solar panels price you see advertised will already have the solar rebate Financial Incentive included in the pricing.
Still have questions?
Just contact us for a FREE Energy Audit of your home or business and discuss options, as you have no obligation to purchase.
The STC prices will be quoted at the current price on the day and included on your quote, you then have 14 days at which the STC price quoted will remain the same whether or not they rise or fall, and seeing they’re at an all time high, they may only fall.
Then sign a few documents and we take care of the rest.