Solar Victoria’s Rebate & How To Get It!
Posted: 24 Aug 2018
Tagged: Rebates | Solar PV |
A breakdown of The NEW Victoria Solar Rebate and how you can actually get it!
So, the dust has slightly settled after Solar Victoria’s big announcement entitling 24,000 Victoria households to a NEW Solar Rebate, effective immediately. However, with the big announcement came a lot of confusion, questions and excitement of potential solar savings!
- What is the Solar Home: 50 Percent Solar Rebate
- Why Is It Called 50 Percent Solar Rebate?
- How is the 50 Percent Solar Rebate Paid?
- Who’s Eligible to Receive the Rebate?
- Who’s Eligible to Supply You with Solar?
- Can you claim the NEW Rebate and the STC Government Rebate?
- If you’re eligible and interested, what should you do next?
- Finance Options that could cost you next to nothing!
What is the Solar Home: 50 Percent Solar Rebate
The 50 Percent Solar Rebate is an incentive program that has made approximately 24,000 homes in Victoria eligible to receive up to $2,225 off a solar PV system for their home. The 50 Percent Solar Rebate was put in place on Sunday. It has been announced to run from 19th August 2018 until 30th June 2019.
This NEW 50 Percent Solar Rebate can be used on top of the Federal Government Rebate (STC) that was already in place. Being able to claim both these rebates will mean that you could be saving approximately 66% of the overall cost for a solar system.
Why Is It Called 50 Percent Solar Rebate?
To add more confusion to the solar rebate frenzy, the incentive has been called the “50 Percent Solar Rebate”. This is under the assumption you select a 4kW solar panel system. However, a 4kW system isn’t necessarily going to be the most beneficial system for your household’s energy needs.
What the rebate should have been called is the “Get Up to $2,225 OFF Solar Rebate” because essentially that is what it is.
The average solar household in Australia varies between having a 5kW-7kW system, which is a sufficient size for most household’s, energy consumptions. Long term a larger system will be more beneficial and lower your power bills. Whilst the Government is willing to throw you some funding towards it, you may as well go big or go home.
Note: There is no minimum or maximum size system for the 50 Percent Solar Rebate, but savings are capped at $2,225.
How is the 50 Percent Solar Rebate Paid?
This was the question that caused a whole lot of chaos within the solar industry. Great, there’s a rebate but how do you get it?
Solar Victoria has recently announced that;
“Rebates will initially be provided to households directly. In the coming months, Solar Victoria will develop a streamlined process that will enable installers to distribute the rebate as part of their invoicing.”
Consumers can find out about the steps required to be part of the program at www.solar.vic.gov.au.
Who’s Eligible to Receive the Rebate?
Approximately 24,000 households in Victoria are eligible for the 50 Percent Solar Rebate.
Is your home one of the lucky eligible?
- Does your household have a combined income of less than $180,000 per annum before tax?
- Are you a home owner-occupier of a home that is valued at under $3 million?
- You don’t already have a solar panel system installed at your property, OR are an early adopter (Installed a solar system prior to 1/11/2009)
If you can answer YES to all the above then you are eligible!
TIP: Not-for-profit community housing providers may also be eligible to apply on behalf of their tenants.
Who’s Eligible to Supply You with Solar?
For a household to be able to claim the 50 Percent Rebate, they will need to assure they sign with an installer who falls under the requirements Solar Victoria has stated or a retailer who can provide you with an installer with those requirements. Most of the requirements Solar Victoria has set are standard, within the solar industry and the documents should be easy enough for the installer to provide you with.
- Be a Clean Energy Council (CEC) Approved Product and use a CEC Accredited Installer
- Be able to provide a statement that they have NOT received a WorkSafe infringement notice in the past three years
The Installer will also NEED to be able to provide the below:
- The Commonwealth Solar PV STC Assignment
- The Solar Connection Form
- The Electrical Work Request
- The Certificate of Electrical Safety
- An invoice detailing the size, cost and date of installation of the solar PV system
Unless the installer can provide these, do not sign a contract with them and expect to receive this rebate.
Can you claim the NEW Rebate and the STC Government Rebate?
If you said yes to the previous eligibility questions and your households in Victoria, then yes!
You’re lucky enough to have both these incentives running at the same time and can claim both! Both rebates are one-off discounts to offset the cost of the solar panel system. Being able to use both these rebates means you could get approximately 66% OFF your solar system! Once installed your electricity bills will be substantially reduced and you’ll be reaping in the solar savings.
As a hypothetical scenario;
For a $7,000, 6kW system you could walk away only paying $2,380 ($4,620 discount using both rebates). Your brand-new solar system could give you savings of $890 per year in electricity bills. This means you’d be looking at a return on investment (ROI) in approximately 2.5 years, which could be even less, depending on the selected size and installer.
If You’re Eligible and Interested, What Should You Do Next?
- Do your research into what size system will be suitable for your household – Check out our Solar Savings Calculator.
- Speak to your electricity provider about how this could affect your rates and what their feed-in tariff rates are.
- Get in touch with solar providers and compare quotes – Get 3 Obligation FREE Quotes on us!
- Ensure the installer meets the criteria stated and they can provide the documents required.
- Sign, install and enjoy the benefits of solar savings!
Finance options that could cost you next to nothing!
If you don’t have the upfront payment, but would hate to miss out on this solar opportunity, finance is an option! However, make sure the interest associated with the financial loan isn’t going to extend your ROI dramatically.
Some finance companies such as Plenti provide low-interest loans specifically for green projects or energy efficient products. Plenti Green Loan has low-interest rates from 6.9% pa. Elsewhere you could be looking at as high as 19.75% interest on a credit card.
Here’s a hypothetical scenario with the Green Loan;
If you were to take out a Green Loan at the value of $2000 and wanted to pay it off within 24 months, you’d be looking at re-payments of roughly $99 per month. Using your solar system for power, could give you savings of $890 per year on electricity bills. Meaning your savings could cover the costs of your loan. After the loan is paid in 24 months the money you save from your new solar system, would be pocketed to do with what you please!
Sounds like a pretty good deal? – Check with your solar installers to see if they can finance!
What if your homes not suited to rooftop solar?
Households, where rooftop solar is unsuitable, can still benefit. If eligible, a household can receive $1,000 rebate on the cost of a solar hot water system, which can produce savings of $400 per year on energy bills.
To be eligible for a rebate on a solar hot water system you must meet the following criteria;
- Are in a household with a combined income of less than $180,000 per annum before tax
- Are an owner-occupier of a home valued at under $ 3 million
- Are replacing an existing hot water system or has had an eligible hot water system installed on or after 19 August 2018
- Chooses a product that is on the Clean Energy Regulator’s “Register of approved solar hot water heaters” and;
- Engages an installer who can provide a statement that they have not had a WorkSafe prosecution in the past three years.
Households will only be eligible for one rebate under the Solar Homes package (i.e. a household that accesses a solar hot water rebate cannot claim a solar PV rebate).
What happens after the 30th of June 2019?
After June 30th, 2019 the Government plans to make more homes eligible for the 50 Percent Solar Rebate, pledging $1.2 billion in rebates and no-interest loans for more than 650,000 homes. The interest-free loan will be able to be paid over a 4-year period with the idea that the savings made from lowered power bills will easily cover the payments. However, these post-June 30th plans are not guaranteed! These promises come with the hope of the Labor Government being elected for State Government in the coming election.
While you’re eligible for both the 50 Percent Rebate and STC Government Rebate, it’d be smart to jump at the savings!
Let’s get you started!
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