There are two main types of Solar rebates in Australia:
1. Small-scale Technology Certificates (STCs): This Rebate is available for residential and small-scale commercial Solar power systems with a capacity of up to 100 kilowatts (kW). Under the Small-scale Renewable Energy Scheme (SRES), homeowners and businesses can create STCs based on the expected electricity generation of their Solar power system over a 15-year period. These STCs can then be sold to electricity retailers or STC agents, who are required by law to buy a certain number of certificates each year. The value of STCs fluctuates based on supply and demand.
2. Large-scale Generation Certificates (LGCs): This Rebate is applicable for Solar power systems with a capacity of more than 100 kW. LGCs are created based on the renewable electricity generated by these systems. Similar to STCs, LGCs can be sold to liable entities, such as electricity retailers, to meet their obligations under the Large-scale Renewable Energy Target (LRET) scheme.
Both STCs and LGCs are tradable commodities, allowing homeowners and businesses to receive an upfront discount on the cost of their Solar power system by assigning their Rebate to the installer or selling it on the open market.
It is important to note that the value of these rebates can vary depending on factors such as the size of the system, location, and market conditions. Additionally, rebates may be subject to changes in government policies and regulations.