How much is the government solar rebate in 2021?
What is the Australian Solar Rebate?
The Australian Solar Rebate, also called STC Rebate, is a part of the Australian Government's Small-scale Renewable Energy Scheme (SRES).
This solar rebate was introduced to make solar more affordable for the average homeowner, and to provide the renewable energy industry with a boost. The rebate is calculated to reduce every year, in order to slowly "wean" Australians off the rebate, as the technological capabilities of solar increase, and the cost of solar decreases.
What is an STC?
STC stands for Small-scale Technology Certificate. It is essentially a "coupon" that gives you a discount off the total cost of your solar system.
Each system will get different STCs based on the location of the solar installation, as well as the size of the system that's being installed. This is because it's all about the amount of renewable energy the system installed will be able to create.
STCs are a part of a complicated financial trading system, which is why most providers, including the team here at Econnect Solar, calculate the STCs on behalf of the home owner.
How is the Solar Rebate Calculated?
As we mentioned above, the Solar Rebate reduces every year the scheme is in place. Introduced in January 2017, the rebate reduces by one fifteenth every year until it is gone completely in 2032.
Calculating the discount you will get on your system is a combination of four factors:
1. The size of your solar system in KW
2. The number of years left in the scheme
3. The location that the system is being installed in
4. The current value of STCs
Specifically, the formula for calculating how many STCS you will get looks like this:
Size of System in KW x Years Left in Rebate x Area
The government have a nifty tool here that you can use to calculate the number of STCs you will get based on your install date, area and system size.
We decided to use the East Maitland, NSW Postcode of 2323 with a standard 6.6KW system installed on 23rd April 2021, and calculated 91 STCs.
With the average STC value currently around $38, that means you could be eligible for a discount of $3,458.
Who Can Claim The Solar Rebate?
Before you get too excited, remember that claiming the solar rebate is only available to home owners who meet the following eligibility requirements:
The solar system you get installed must be less than 100kW
A Clean Energy Council (CEC) member must install your solar system
As a Clean Energy Council member, we have saved our customers millions of dollars using the STC rebate and are on a mission to save millions more.
Get in touch with us if you're interested in setting up a free energy assessment and rebate calculation for your home.
The Risk Of Fluctuating STC Value
One thing you need to know about STCs is that their value fluctuates with market conditions, and in the worst case scenario it could be $0, although this is highly unlikely.
However, if the STC value suddenly drops it can take homeowners by surprise, pushing up the price of a solar system. To eliminate this risk for our customers, the Econnect Solar team offer 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."
If you're looking to get solar for your home, now is the time to do it, before the ACCC and the COALition succeed in their attempts to ditch the rebate, and while the rebate is still over $3000.
With our Match My Bill program you can also make sure you're not out of pocket, as our solar specialists ensure your finance repayments do not exceed the cost of your existing electricity bill.
And what's even better is that you can rest easy knowing that although solar technology is made overseas, you've chosen to support a 100% Australian owned solar company, that works with a 100% Australian owned finance partner, and a 100% Australian owned supply partner.
Ready to calculate your solar savings?