Once you start to search about solar equipment options online, numerous ads pop up claiming to give ‘free solar’. Before you get tempted, you need to be cautious.
There are incentives by the Federal Government on buying solar. We’ll guide you through and explain how these rebates actually work so you have a better understanding and are wary of gimmicky schemes.
How exactly does it work?
The Federal Government provides financial incentives under the Small-scale Renewable Energy Scheme (SRES) to promote and encourage the use of renewable energy resources.
This scheme started in the year 2017 and will end by 2030.
After your solar system is installed, it is eligible for receiving STCs- Small-scale Technology Certificates for every megawatt-hour of electricity your system produces until the year 2030.
You can earn your money back by selling off these certificates. The value of STCs fluctuates with the market trends.
Usually, people go for an upfront discount from the installer instead of selling the STCs on their own as it is more time-consuming and requires some knowledge to make the most of it.
How much will you save?
How much you can save through a rebate depends on the following few factors:
- Your location in Australia
- Size of your system
- The present market value of the STCs which fluctuates depending upon supply and demand
When you get a new system, your installer probably will calculate the STCs that your system will be eligible for and how much money you could save.
Other incentives and state-specific rebates
All solar installations are eligible for rebates throughout Australia. But there are certain states that provide specific rebates and other financial incentives.
In NSW, the government started a trial plan in the year 2020 to provide interest-free loans to households in the Hunter region.
Another scheme in NSW helps provide free solar PV systems to lower-income houses.
The solar rebate is available till the year 2030 and this is the right time to get your solar PV system installed so that you start to save early.