Solar panel installation rebate Brisbane

Understanding the Australian Federal Government Solar Rebate Scheme

Government Solar Rebate Overview

Strictly speaking, the federal government solar rebate is not actually a rebate. Here, we’ll try to explain what it really is and how it can benefit you.

The program that is popularly known as the government solar rebate is officially called the Small-scale Renewable Energy Scheme. The scheme was started in 2017 and is officially due to end in 2030.

How the Renewable Energy Scheme Works

This scheme works by creating special certificates known as Small-scale Technology Certificates (or STCs). For larger, industrial-scale usage (over 100kW) these certificate are also called Renewable Energy Certificates (or RECs).

These STCs are given to anyone who purchases a solar power system (or other renewable energy technology such as solar hot water or wind turbines). The number of certificates you receive is based upon three things;

  • the size of the solar power system,
  • where in the country you are, and;
  • how long until the end of the scheme.

The government then requires that polluting industries purchase these certificates to compensate for their activities. The money received from the sale of these certificates is effectively what becomes the “solar rebate”.

Luckily, accredited solar installers are able to claim and sell the certificates on your behalf. This allows them to simply discount or offset the upfront price of a new solar system to you.

The rebate is available for both a residential solar power system and commercial solar installations.

Value of the Solar Panel Rebate – Pricing the STCs

The value of the certificates are not set in stone but fluctuates with market demand. Additionally, the value of the STCs will decrease over time as the scheme moves closer to its end date.

It is better to get into a solar power system earlier than later in order to maximise the rebate. Regardless of what the current solar power systems prices are or will become, solar panels are still worthwhile.

The solar rebate scheme allows you to purchase any solar power installation at a cheaper price.  The real long-term benefit of a solar panel system, however, is that you generate your own electricity. This reflects in a smaller electricity bill each quarter for as long as your solar system operates.