Types of Solar Rebates
Are you thinking about making the switch to solar? If eligible, you could save thousands of dollars on solar panels, heat pump or hot water systems thanks to the Australian Government’s solar rebates. It’s certainly worth finding out more.
There are 2 main types of rebates for solar systems in Australia:
- Small-Scale Technology Certificates (STCs) where the rebate is usually given as a point of sale deduction from the purchase price of the system.
This rebate applies to heat pump and solar hot water systems, solar power systems (which use photovoltaic panels to generate electricity) as well as wind and hydro systems. STCs are a federal rebate.
For further details refer to my blog Small Scale Technology Certificates explained. - A rebate in the form of a feed-in tariff for renewable energy produced.
This rebate only applies to renewable energy systems, and mostly applies to solar power only (it does not apply to solar or heat pump hot water systems).The feed-in tariff rebate is a state initiative. If you are looking into this type of solar rebate be aware that there is considerable variation in each state.
Feed-in Tariffs
Photovoltaic (solar), wind and hydro power systems generate power so you don’t have to buy it from the grid.
Most Australian State Governments have a residential subsidy scheme whereby you are paid for your solar power production at the feed-in tariff rate. Some states also provide feed-in tariffs on wind and hydro power.
The feed-in tariff rates and terms and conditions vary in each state, and also vary over time, so it is important to check the website of your state and electricity supplier to understand the feed-in tariff’s impact on you.
If you have multiple electricity providers in your area, e.g.Victoria, it may be financially beneficial to change providers when you change over to renewable energy.
When you change over to solar power you will need to get your meter re-programmed or changed to one that monitors your power generation or usage from your meter as it occurs to enable you to take advantage of the feed-in tariff.
The amount your power bills fall once you install solar power will depend upon:
- the energy your system generates,
- the electricity you consume,
- your pattern of energy consumption (i.e. if you use more or less of your power between 9am and 3pm when most of your solar power is generated), and
- if you have a battery back up which stores excess electricity for you to use at night time.
Net and Gross feed-in Tariffs
With a net feed-in tariff you receive credit for the power you sell back to the grid i.e. the difference between what you produce and what you consume.
A gross feed-in tariff credits you for all the power you produce.
Current feed-in tariff rates are less than the cost of buying the electricity so it is generally better to choose a net feed-in tariff, if it is an option.
The effect of feed-in tariff receipts on your taxable income and social security payments depends on various factors and it is best that you seek advice.
This article was written by Don Curnow owner of Air and Water Residential, Perth Western Australia. Don has 9 years experience in the solar industry in Perth.
