Australia has some of the most generous incentives that assist homes and business with installing solar power.
Solar incentives in Australia come in two primary forms:
Businesses installing solar systems over 100kw are entitled to Large Generation Certificates (LGCs) under the Renewable Energy Target. These form an additional ongoing income stream for the system rather than an upfront discount for STCs.
Otherwise, go to the next page about How Feed in Tariffs work.
Small Technology Certificates (STCs)– an upfront discount on your Solar System
Although many believe this to be a rebate given by the Federal government for installing solar it’s actually a scheme to incentive electricity retailer to invest in more renewable energy.
The effect is that you are given a discount on the price of the system installed by your supplier:
• The installer claims the rebate on your behalf and gives you a discount in return.
• There is a small amount of paperwork to complete on signing up and then on the day of installation. The salesperson can guide you through this.
• The rebate is not Means Tested.
• You can claim more than once per property (even if you’ve previously claimed you can expand or replace your system at a later date).
• You can claim on multiple properties.
Large Generation Certificates – an ongoing income stream for solar systems over 100kw
The Large Generation Certificates are formerly known as Renewable Energy Certificates [RECs] and were introduced with the intention of financially assisting large scale renewable energy. They are the result of the government signing on to various international treaties to
increase the use of renewable energy worldwide. Here in Australia, there is a set target of 20% renewable by the year 2020.
In the past consumers have paid for RECs as a percentage of their consumption – between 2% and 5%. This revenue was passed on to large scale renewable generators.
Certificates are traded like shares allowing customers on contracts to negotiate the cost of these certificates in the same way they negotiate contract energy prices.
Australia wide incentives
The incentives can vary from state to state. Click on the state below to read about the local incentives: