There are two main types of Solar rebates in Australia: small-scale technology certificates (STCs) and feed-in tariffs (FiTs).
1. Small-scale technology certificates (STCs): STCs are a form of government incentive that aim to encourage the installation of small-scale renewable energy systems, including Solar panels. Under the Small-scale Renewable Energy Scheme (SRES), homeowners and businesses that install eligible Solar systems are eligible to create STCs, which can be sold to electricity retailers. The number of STCs created depends on factors such as the size of the system and its location. The value of STCs fluctuates based on market demand and supply.
2. Feed-in tariffs (FiTs): FiTs are another form of financial incentive provided by some state governments in Australia. These tariffs allow homeowners and businesses with Solar systems to sell excess electricity generated back to the grid. The rate at which electricity is bought back by the grid is typically higher than the retail electricity price, providing an additional income stream for Solar system owners.
Both STCs and FiTs aim to reduce the overall cost of Solar installations and make them more financially viable for homeowners and businesses. These incentives have helped to significantly increase the uptake of Solar energy in Australia over the past decade.