How Much Is The Government Solar Rebate In 2019?
Although Australians have missed out on Labor’s renewable energy plans there’s still a lot of help available in solar power rebates – supporting the environment as well as slashing electricity bills.
What Is The Solar Rebate?
Just to briefly recap, the Solar Rebate, also called STC Rebate is an incentive by the Australian government as part of its Small-scale Renewable Energy Scheme (SRES) to encourage households to install solar systems. STC stands for Small-scale Technology Certificate, which can be claimed when an eligible solar power system is installed, to receive a rebate.
Who Can Claim The Solar Rebate?
Anyone can claim the rebate, even if you already have solar on your roof and want to buy a new system. The only requirements you need to fulfill are the following:
Your system must be smaller than 100kW
You need to get it installed and designed by a Clean Energy Council (CEC) member
Your panels and inverters are approved for use in Australia by the Clean Energy Council
When Does The Rebate End?
The Solar Rebate is in the process of being phased out, so this is what you need to know. With current legislation, the solar rebate started to reduce by one fifteenth every year from January 2017 until it drops to zero in 2032.
For solar power systems installed this year, the deeming period is 12 years, in 2020 it will be 11 years, and so on. This reduction will continue until the deeming period will be zero and the Rebate will be $0.
How Much Is The Rebate In 2019?
Let’s take a look at the financial assistance that is offered in NSW. To give you an example, a 6.6kW solar system installed in this area is currently eligible for 109 STCs. This works out to a $3,721 Rebate– a significant amount of money that greatly reduces the cost of going solar.
The Risk Of Fluctuating STC Value
One thing you need to know about STCs is that their value fluctuates with market conditions. The maximum value an STC can reach is $36 and the minimum $0. If the STC value suddenly drops it can take homeowners by surprise, pushing up the price of a solar system by a lot. To eliminate this risk for our customers, we at Econnect Solar ensure a fixed STC value.
Could The Rebate Be Prematurely Ended?
Besides the fluctuating STC value, another risk is the possibility of the rebate ending prematurely. Coalition MP Craig Kelly has been at the forefront to boost coal's image and see new coal-fired power stations built in Australia. Kelly wants the solar rebate gone.
Kelly hasn’t been alone in his plans for the solar rebate. The ACCC (Australian Competition and Consumer Commission) has repeated its earlier recommendation in their new report that Australia’s solar rebate should be prematurely ended.
"The ACCC believes that the subsidy of small-scale installations is no longer required given the dramatic fall in the cost of solar installations since the inception of the scheme in 2011."
Given its powerful opponents, and also the fact that the rebate is reducing each year, it makes good sense for households to get solar installed whilst the solar rebate still exists!
One thing is for sure and that’s the unstoppable uptake of rooftop solar. Because homeowners and businesses across Australia understand that solar makes sense.
Econnect Solar offers highest quality solar power systems with $0 upfront cost and 0% interest options.
Find out how much you can save with an Econnect Solar Solution here!