Federal Solar Rebate to be reduced up to $5,069 in 2020
Posted: 18 Nov 2019
As the end of the year swiftly approaches so does the annual decrease of the Federal Government Solar Rebate. The Solar Rebate, which entitles households and small businesses to large subsidies when purchasing and installing solar PV systems will lower come January 1st, meaning customers buying solar PV systems from this date forward will not be entitled to as large of a rebate as what is available now. The rebate is set to decrease anywhere from $100- $5000+ dependent on the size solar system you intend to purchase.
How does the Solar Rebate work?
The solar rebate officially known as the Small-scale Renewable Energy Scheme (SRES) provides those purchasing solar PV systems with a substantial rebate based on the amount of small-scale technology certificates (STCs) that the system is permitted to. STCs are certificates which system owners or installers can trade in exchange for an upfront discount to the cost of a solar system. STC’s have a dollar value which can fluctuate depending on market demand, changes in Government and other factors in the industry.
The larger the solar PV system the more STC’s a system is entitled to, the more STC’s, the greater the rebate. Every year on January 1st the amount of STC’s a solar system is granted decreases meaning the rebate decreases.
How much will the Solar Rebate decrease by?
The larger the solar PV system, the greater the rebate and the more significant the difference will be come January 1st. As a quick guide, below is a table displaying the current rebate and STC’s available VS. the decreased rebate and STC’s come January 1st.
|System Size||State||2019 Rebate||2020 Rebate||Rebate Difference|
|3kW||WA, QLD, SA, NSW, NT||$1,813 | 49 STC's||$1,665 | 45 STC's||$148|
|VIC, TAS||$1,554 |42 STC's||$1,443 | 39 STC's||$111|
|5kW||WA, QLD, SA, NSW, NT||$3,034 | 82 STC's||$2,812 | 76 STC's||$222|
|VIC, TAS||$2,627 | 71 STC's||$2,405 | 65 STC's||$222|
|7kW||WA, QLD, SA, NSW, NT||$4,292 | 116 STC's||$3,922 | 106 STC's||$370|
|VIC, TAS||$3,663 | 94 STC's||$3,367 | 91 STC's||$296|
|9kW||WA, QLD, SA, NSW, NT||$5,513 | 149 STC's||$5,032 | 136 STC's||$481|
|VIC, TAS||$4,699 | 127 STC's||$4,329 | 117 STC's||$370|
|99kW||WA, QLD, SA, NSW, NT||$60,717 | 1,641 STC's||$55,648 | 1,504 STC's||$5,069|
|VIC, TAS||$52,059 | 1,407 STC's||$47,730 | 1,290 STC's||$4,329|
**Please note as the STC value can fluctuate anywhere between $34-$40 these are estimations based on the STC value at $37.
How to calculate the STC rebate
As mentioned earlier STC’s have a dollar value which can fluctuate depending on market demand, changes in Government and other factors in the industry. The value has fluctuated between $34-$40 throughout the Solar Rebate scheme but is currently sitting around the $36-$37 mark.
A simple way of estimating the rebate amount is to multiply the STC $ value by the amount of STC’s a system is entitled to.
As a example; A 5kW system is entitled to 82 STC’s in 2019. As the STC value is currently at $37 the calculation would be 82×37= $3034. This means you could purchase a 5kW solar system valued at $9,000 for under $6,000 when using the $3,304 rebate.
Why does the rebate amount vary by location?
For the purpose of the Solar Rebate, Australia is segmented into zones ranging from 1-4. What zone an area is has been determined by how much clean, renewable energy a solar system can generate in that location. In simpler terms the more sunshine an area gets the more STC’s a system installed in that area will receive. Locations in Zone 1 receiving the highest amount of STC’s and those in Zone 4 receiving the least.
Solar Victoria’s Panel Rebate to also drop!
For those in Victoria the reduction to Solar Victoria’s Panel Rebate will also take place in January, with the value plummeting from $2,225 to $1,888. Read more on the decrease to Solar Victoria’s Panel Rebate here.
Now is the time to do your research!
Now is the highest rebates will ever be and missing out could have you paying thousands more towards a solar system. Don’t wait until the end of the year to do your research, start speaking to installers and compare quotes to get the best value system for your needs.
Request 3 Quotes and start speaking to CEC accredited installers about your rebate entitlements!
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