What are Solar Rebates?
Solar rebates are called STC’s, (Which stands for Small-scale Technology Certificate). These are based on how many watts (panels) you install, this is worth around $3700 on a 6.6kw system.
The price of the rebate is taken off the price of what you pay. As an example: An average solar system actually costs $8K minus the rebate, which leaves you with the price you pay. ($9000-$3700=$5300)
How do Solar Rebates Work?
The more power your solar system generates, the greater the size of your rebate. If you live in Queensland, you’ll receive a larger rebate than a Victorian property that doesn’t receive as many sunshine hours. That is to say, more sunshine hours will generate more power.
How Can I Claim the Solar Rebates?
This Solar Rebate subsidises the upfront cost of installing a solar power system and is not means tested in any way.
The only criteria for claiming it are:
- Your system is less than 100kW in size.
- You get it installed and designed by a Clean Energy Council accredited professional.
You use panels and inverters that are approved for use in Australia by the Clean Energy Council.
The installers are the ones who will claim the rebate on your behalf (and apply it to the final cost of your system). So, leave it all to them.
How Much Can I Save with Solar Rebates?
The Australian government will give you a rebate on the purchase of solar panels. The solar panel rebate varies depending on where you live, the system size you install and on market prices. But typically, the incentive will save you between $2,500 – $3,300 off the price of a 5kW solar system. Your government solar rebate varies depending on your system size and your installation location.
When does the Solar Rebates end?
The Australian government solar panel rebate is scheduled to end in 2030. However, each year on January 1st, the solar rebate reduces. Therefore, now is the best time to invest in solar panels if you want to maximise your rebate savings.
Currently, the calculation for your government solar rebate allows you to claim rebates on 12 years of operation. The number of years of operation will reduce by one each year up until 2030. So, If you plan to install solar panels in Sunshine Coast, waiting one more year will reduce your solar rebate. A 6.6kW solar system can reduce by $333 (assumes an STC price of $37).
Be aware that the current legislation means that the solar rebate started to reduce every year from Jan 2017 and It will eventually drop to zero.
When is the best time to Buy Solar?
Well…If you have landed on this page it’s probably because you are already thinking about installing a solar system in your home, so let me tell you something first. That it is one of the best decisions you can make nowadays.
As mentioned above, the amount that you can claim decreases every year on January 1st.
A few years ago, when the government really looked like it was going to scrap the rebate, demand for solar installations caused the price of STC’s to drop.
So if you got a 6.6kW system today, you’d claim a ‘rebate’ of approximately $3,700 (6.6kW x $560 = $3,700). However, if demand for solar goes up and the STC price drops to $17.50 again, you’d only be able to claim a ‘rebate’ of under $1,500 for the exact same system.
So…To sum up, If you ask me when is the best time to buy I would say as soon as possible.
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