Solar Rebates: A Financial Incentive that Works for You

Sharing is caring!

Buying a solar system for the years ahead is something that is on top of everyone’s minds as we move deeper into 2024. And any chance to reduce those installation costs is surely a most welcome relief. Now, when you decide to buy and install a solar system in your home in 2024, part of this is subsidized by the Australian Federal Government Scheme.

Essentially, what this means is that you are set to receive a financial incentive, or solar rebate, from the government, amounting to around $350 per kW that is installed. What that means is that for a typical 6.6kW system, you are entitled to roughly $2,300, which is applied at the point of sale.

As things stand at the moment, current legislation dictates that the solar rebates are reduced by one-fifteenth year-on-year, from January 2017 until 2031 once it has been reduced to zero. Now, let’s get a little deeper into what exactly this financial incentive entails, how Go Solar Quotes can help you, and how this incentive can benefit you. 

It’s Not an Official Rebate

Yes, this scheme is a government program; it is, however, not funded by the government. Hence the fact that it is not an official government rebate. What the scheme does is that it requires other people to buy your certificates, thus being a government scheme that is paid for using other peoples’ money provided as a subsidy. The money does not actually come from the government itself. 

For the sake of correctness and brevity, solar rebates will, from here on out, be referred to as solar incentives. So, that being said, these solar incentives are subsidies that one receives against the upfront cost of the installation of your solar system. The criteria for a claim includes:

1. Your solar power system (PV system) is less than 100kW in size.
2. Your design and installation are done and conducted by a Clean Energy Council-accredited professional.
3. You make use of solar panels and inverters that are approved for use by the Clean Energy Council in Australia. 

The Solar Incentive Financial Scheme in a Nutshell

The following 8 steps will give you a good idea of how the whole scheme works:

1. The government creates a virtual piece of paper called a Renewable Energy Certificate (REC).
2. The government then insists that fossil fuel generators construct a certain number of renewable energy generation plants – wind/solar, or they are eligible to buy the right to other peoples’ renewable energy systems. This is done in the form of RECs.
3. Depending on how big the system that you are installing onto your roof is, the government issues you a certain number of RECs. This is representative of the amount of sun your part of Australia gets, as well as your intended installation date. 
4. The special type of certificate that one gets for your residential solar system is called a “Small-Scale Technology Certificate” – STC. 
5. It is worth noting that your installer may be charging you a small handling fee for dealing with your certificates. So, either you or your system installer then sell these STCs to fossil fuel generators. The value of these STCs is then used to offset the upfront costs you incur when you purchase your solar system.
6. The price of your STC is something like a stock or share price, and it has the ability to fluctuate on the open market depending on the levels of supply and demand that dictate the market. For example, if the solar industry is booming, the price/ value of your STC can drop.
7. The current market price of STCs is available for you to check. Just keep in mind that these are most reflective of the spot price. When your STCs get signed over to an installation company, you are most likely going to be charged a small fee for processing and admin. This cost is subtracted from the value of the STCs, thus lowering their value fractionally and saving you a month’s worth of complexity. 
8. Most of the solar system prices that you see advertised are already priced with this financial incentive in mind and catered for. 

Getting Quotes Sooner Rather Than Later

As was stated earlier, the amount of the incentive that you receive is heavily dependent on the market forces of demand and supply, influenced by the current market price of STCs. That means that during times of increased demand for solar system installations, there are lots of STCs that are created. 

That being said, and knowing the way that things work in the free market economy when the supply of STCs goes up, the price comes down. So check the market and do some homework to find out when the best time for you to get solar panels installed is going to be. The best bet is to start early and enjoy the solar-powered lifestyle today. 

With the boom that the solar industry is experiencing at this time, it is best to get in on the ground floor, so to speak. Get into the solar game before the market erupts, and the supply of STCs far exceeds the demand. Why wait until then? The longer you wait, the greater the risk you run of not getting all you could have gotten.

Benefits of Moving to Solar Energy

Moving away from fossil fuels toward a more sustainable and efficient way of electricity production is the way of the future. There is little doubt that solar is the way forward, and there are not too many things that can make the sun stop shining, now, are there? 

• Increased Affordability – allows more people to access the joys of solar, and with the financial incentive attached, how could you not?
• Lights On When the Grid is Down – enables you to lighten up your life in the event of a power outage or if the grid happens to go down. 
• Increase the Value of Your Home – just like a renovated kitchen or bathroom does. That is how valuable a solar system installation is to your home’s future sales value. 

Once you decide to make the best electrical choice you can, you are going to thank yourself that you did. The value that you add to your property and with the money you are going to save, you can treat yourself to that nice vacation.