The solar rebate is part of Australia's Renewable Energy Target and was introduced at the start of 2011. The Australian Federal Government solar incentive scheme entitles you to claim a rebate on the purchase and installation of a solar system. The rebate or subsidy — referred to as STC (Small Scale Technology Certificate) — allows a discount on the final price of the solar system that you actually have to pay out of your pocket. Usually, the amount of rebate depends on where you live and it phases out slowly every year. Currently, it ranges anywhere between $500–$600 per kilowatt.
Installing an eligible system allows the creation of Small-scale Technology Certificates (STCs) with a value that can be redeemed by selling or assigning them — also termed Renewable Energy Certificates (RECs). The number of RECs created is based on:
There are certain conditions to claim STCs:
You can check the STCs you are eligible for on the Clean Energy Regulator website using the STC Calculator.
Owners have 2 options for receiving benefit for their STCs:
Example: The price of a 6.6 kW fully installed solar power system in Brisbane in 2020 is around $7,500. You are entitled to 100 RECs. With RECs priced at $37, your total rebate is 100 × $37 = $3,700. Your effective out-of-pocket cost becomes $7,500 – $3,700 = $3,800.
The price of RECs fluctuates depending on factors like the demand for solar systems — when demand increases, price goes down, and vice versa. To keep things simple, you can surrender your RECs directly to your solar system supplier. By doing this:
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