The Australian government offers several types of Solar rebates to promote the adoption of renewable energy. The most well-known Rebate is the Small-Scale Renewable Energy Scheme (SRES), which provides incentives for installing small-scale Solar panel systems, wind turbines, and hydro systems.
Under the SRES, homeowners and businesses receive Small-Scale Technology Certificates (STCs) for every megawatt-hour of renewable energy their system is expected to produce over a 15-year period. These STCs can be sold to electricity retailers or traders, who are legally obligated to buy a certain number of certificates each year. The revenue from selling STCs helps reduce the upfront cost of installing Solar panels.
The number of STCs a system is eligible for depends on its location, size, and the amount of renewable energy it is expected to generate. The Rebate amount is calculated by multiplying the STCs by the market price, which can fluctuate depending on supply and demand.
In addition to the SRES, some state governments in Australia also offer their own Solar rebates. These state-specific rebates can further reduce the cost of installing Solar panels and vary in terms of eligibility criteria, Rebate amounts, and application processes.
It’s important to note that the Australian government has announced plans to phase out the SRES by 2030, with the Rebate declining each year until it reaches zero. This gradual reduction aims to reflect the decreasing cost of Solar panel installation and the increasing affordability of renewable energy systems.
Overall, Solar rebates in Australia play a crucial role in incentivizing the adoption of Solar panels and other renewable energy systems. By reducing the upfront cost, these incentives make it more accessible and affordable for homeowners and businesses to transition to clean and sustainable energy sources.