Is Solar Rebate and Feed-in Tariff the same?
People are still getting confused between the two terms- Solar Rebate and Feed-in Tariff (FiT). These are two completely different incentives given to the people going solar.
So what’s a solar rebate?
The Australian government has incentivized solar power to encourage people to shift to renewables. STC’s (small-scale technology certificates) are awarded to home and small business owners who install solar panels on the roof of their properties. The number of STCs awarded against the system depends upon its size. For every 1,000 kWh of estimated power production (from the date of installation till the end of 2030), one STC is awarded. The value of STCs largely depends on the market conditions and varies accordingly.
What’s a rebate worth?
The value of rebate reduces each year and it will be zero in 2030 since the scheme ends in 2030 (it started in 2017). So a system that was installed in 2021 will have more STCs than a system installed in 2022 or after. But it’s not too less. It sure does decrease but is still a great investment.
Now, what’s a feed-in tariff?
The excess unused electricity produced from your solar power system can be fed into the main electricity grid for compensation on your electricity bill. This is a payment that you receive from your electricity retailer.
Is the feed-in tariff still worth it?
Feed-in tariffs used to be a lot higher than what they are today as the government wanted to promote solar initially. The FiT rates have decreased over the years but shifting to solar is still a great investment if you think about the rebate, feed-in tariff, and the overall cut on your electricity bills altogether. Lower FiTs also mean that you can self consume your solar power during the day so that you cut down on your electricity bills even more.
Going solar, by all means, is still more economical than sticking to your main grid for electricity. Considering the rebate, and FiTs, it is worth investing in for a better future.