Did you know that the government incentive to install solar goes up and down depending on how many people are installing?
The incentive was designed to ‘self-regulate’ the market.
When a lot of people are installing solar, the value of the incentive falls. This increases the cost to the consumer and slows down the market.
When fewer people are installing, the incentive increases, reducing costs and encouraging more people to install.
Currently, with the market slowing, the value of the incentive has crept higher. In real terms, households that install solar are now eligible to receive up to $5,168* off the up-front price of the system.
**Incentive estimate based on calculations for STC zone 3 at STC price of $38/kW. The amount of STCs received depends on the location of your installation. The price of STCs is calculated based on market value and is subject to change. Check online to get the most accurate price.
The result was a significant increase in the cost to install solar for consumers.
It’s a fact of life that when solar is in the news, more people start installing.
Now, we can’t say for certain that the value of the incentive will fall, but what we can say for certain is that it definitely won’t be getting much higher than it currently is.
Without getting too technical, the value of the incentive is capped by the government. Under the same conditions as the $5,168 figure (6.6kW system installed in zone 3 area like Perth, Sydney or Brisbane), the highest possible amount it can go by law is $5,440.
If you’ve been considering installing solar, you couldn’t pick a much better time than right now.
If you want to cash in on the current unprecedented high prices of STCs, then lock in your rebate today.
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