- Purchase price reductions when buying a solar power system.
- Power bill credits for excess power produced by your solar system that you don’t utilise.
- Government solar rebates & incentives in Western Australia
- Government solar rebates & incentives in Queensland
1. Reduction in Purchase Price
Small-scale technology certificates (STCs)
When a solar system is installed, an STC or Small Technology Certificate is generated (STCs), these are often referred to as the ‘Government Solar Rebate’. For every Megawatt of energy your systems is expected to produce until the year 20131, you’ll receive one STC.
For example, a 6.6kW system (approx. 20 panels) will produce around 100MWh worth of electricity over the 11-year period until 2031, meaning you are entitled to 100 STCs.
Once the STCs have been registered and your system has been installed, the STCs can be sold to recoup a percentage of the cost of the purchase price of your solar PV system. Given the intricacies surrounding the creation and the selling of STCs, it’s normal practice to allocate the right to generate the STCs to the provider of your solar panel system, this is in exchange for an upfront deduction off the complete, or ‘true’, price of the system.
STCs currently trade for around $36 each, which means you’d receive around $3,600 discount off the full, or ‘true’, cost of a 6.6kW system.
STCs are issued with qualifying solar power systems and solar panels and can be redeemed for a dollar value that is deducted from the cost of the solar system. The value of an STC at any one time depends on market conditions.
When you purchase a solar power system from JFK Electrical, Solar & Air, we have already discounted this value for you in your solar quote. That’s because we take over the hassle of registering and selling the STCs on the market from you. We give you a point of sale discount based on your STCs.
On the day of installation, you assign the STCs over to us, we then complete the registration of these certificates with the Renewable Energy Regulator on your behalf and eventually recoup their value. You don’t have to wait for this to happen, we do. You get an immediate deduction in cost.
STC values and ‘zoning’ – How they affect your discount
The amount you get back from the STC scheme is based on three factors:
- Zoning (where you live)
- STC $$ value (which fluctuates)
- The deeming period (which decreases each year)
Who is Eligible to receive STC’s?
- Residential, commercial property owners and community groups are all eligible for the Scheme credits with no means-testing used
Can I install the panels myself to get the full solar credits value?
- No. The Office of the Clean Energy Regulator mandates’ only CEC accredited installers can sign off on STCs
2. Credits for excess power.
The major benefit that your solar panel system will give you is to offset your day-time electricity tariff. For every unit of electricity your solar power system produces and that you consume means that you do not have to purchase that unit from your electricity retailer.
What is a grid connect solar power system?
Grid connect systems, which are the most common in built up areas, supply solar electricity through an inverter directly to the household and to the electricity grid if the system is providing more energy than the house needs. When power is supplied to the mains grid, the home owner receives a credit or a payment for that electricity. This is called a feed in tariff.
Your electricity retailer purchases any electricity generated by your solar system that you don’t use on any grid connected system with an inverter no larger than 5KW.
3. Solar rebates in Western Australia
|Reduction in units needed to be purchased from the grid||The number of units produced by your solar system that are consumed on your property (and hence this reduces that number of units to be purchased from your retailer)||28c (Synergy A1 Tariff)
Up to 53.9c (Synergy Smart Home Plan Tariff)
|Payment for units exported to the grid||The Renewable Energy Buyback Scheme pays you for any units of electricity your solar system produces that you do not use on your property.||7.1c|
4. Solar rebates in Queensland
A contribution of between 6-12c/kWh is paid for units transferred to the grid – this is referred to as ‘A Voluntary Electricity Retailer Contribution’. (Please check with your local solar panel retailer as this can vary among different providers).
|Reduction in units needed to be purchased from the grid||The number of units produced by your solar system that are consumed on your property (and hence this reduces that number of units to be purchased from your retailer)||Your electricity retailer’s daytime tariff|
Solar photovoltaic (PV) panels on the roofs of homes and businesses use energy from the sun to generate electricity cleanly and quietly. The conversion of sunlight into electricity takes place in cells of specially fabricated semiconductor crystals.
Solar doesn’t generate electricity all the time, but it does generate electricity when it is needed most – during the day and during hot sunny periods when the demand for power (driven by air conditioners) is at its peak.
Another bonus of small-scale solar is that it generates electricity at the point of demand (i.e. where people live and work). This means that there is no need to transfer energy over long distances using expensive electrical infrastructure.
Australia is one of the sunniest continents in the world. Given a stable policy environment, there is massive potential for solar to make a significant contribution to electricity generation in Australia over the coming decades.
The growth of solar
More than 2 million households now enjoy the benefits of rooftop solar across Australia.
How much money will I save by installing solar?
The amount of money your household will save on power bills by going solar is affected by a number of factors, including:
- Your energy consumption and the size of your solar power system – if you use more power than your system is capable of producing, your savings will be reduced. It’s important to choose the right-sized system for your needs.
- Your feed-in tariff – this is the amount your electricity retailer pays you for any excess power your solar panels generate.
- Your usage patterns – solar panels can only generate electricity while the sun is shining. This means that households that use a lot of power during the day may attract greater savings than those that consume most of their power at night. However, you will still receive a feed-in tariff for any excess electricity you generate during the day.
Businesses have a couple of other things to consider, including the tax & gst benefits.
A Clean Energy Council Approved Solar Retailer must provide a site-specific estimate of your system’s energy generation.