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Solar Panel Incentives Explained

 

 Reducing the up front cost of Solar Power Systems

 

In todays market if you were to buy a solar system it is subsidised by a government scheme that is worth approximately $700 per KW Installed.  That equates to an estimated saving of $3,500 off a typical 5kW system, this saving is usually applied at the point of sale - that is, your installer will use these savings to reduce the 'up front' cost of your solar system.

 

There is currently a government scheme called the Renewable Energy Target (RET) Under the current legislation the solar rebate will start to reduce by one fifth every year from January 2017 until it drops to zero in 2022.  Without the RET there will be no solar rebate and the price of a solar system will increase by around 40%.

 

The dollar value of the solar rebate is changeable and goes up and down so if the demand for solar is high the rebate could plummet.  The STC price is valued anywhere between $0 & $40 maximum.  So if the value of the rebate is at its highest rate of $40 that equates to a rebate of approximately $700 per kw installed.  If solar systems suddenly started flying off the shelves, the rebate would almost certainly drop.  Going back a few year this did happen and the rebate dropped to just $17 per kw which in turn dropped the value of the STC to approximately $350 per kw installed.

 

The Small Scale Technology Certificate - STC Programme

 

The solar financial insentive subsidises the up front cost of installing a solar power system and is available to everybody.  The only criteria for claiming are:

  1. Your system is less than 100kw in size
  2. You get it designed and installed by a Clean Energy Council accredited professional
  3. You install panels and inverters that are approved for use in Australia by the Clean Energy Council.

So What is the Financial Incentive Worth to Me?

 

Question - How much can I get off the price of a solar system?

 

If the rebate is worth $700 per kw if installed today you would get roughly $2,100 off of the cost of the system

 

e.g 3kw system x $700 rebate value = $2,100 saving on the cost of the system - The bigger the system, the higher the rebate.

 

How the Solar Financial Incentive Works

 

The government introduced Renewable Energy Certificates (RECS).  It mandates that the fossil fuel generators have to either build a certain amount of renewable generation in the form of wind or solar or buy the rights to other peoples renewable energy systems in the form of RECS.

 

The type of RECs that you get for your residential solar system are called "Small Scale Technology Certificates"   It is normal that your installer handles the assignment of your STCs to the fossile fuel generators and use the cash to offset the up front cost of the solar system purchase.  This is known as 'assigning STCs'

The STC price is a bit like a share price - it fluctuates on the open market depending on supply and demand i.e. if the industry is booming (usually just prior to the rebate being cut!) then the STC price drops and visa versa.

 

  • At the time of writing this (September 2016) the STC price is around $39 per kw.
  • Almost all solar systems prices you see advertised will already have the Solar Financial Incentive (STC) included in the price

Here at Greenbuild Energy Solutions we guarantee you the full value of your Financial Insentive when you sign up for a system - It is hassle free as we deal with every aspect of you purchase, Insentive, paperwork, installation and ongoing maintainence should this be required.  All of our Installers are highly expirienced and of course Clean Energy Council Accredited!