The SRES works by providing small-scale technology certificates (STCs) to eligible Solar panel owners. These certificates can then be sold to electricity retailers, who are required by law to purchase a certain number of certificates each year. The price of STCs depends on the market demand and can vary over time.
The number of STCs a Solar panel owner receives is determined by the size of the system and its geographical location. The more electricity the system is expected to generate over its lifetime, the more STCs it will be eligible for. This means that larger systems or those installed in areas with higher levels of sunlight will receive more STCs and thus a higher Rebate.
The value of each STC is also subject to a deeming period, which reduces the number of certificates available each year. This means that the Rebate value decreases over time as the deeming period progresses. The deeming period for Solar panels is currently set at 15 years.
To claim the Rebate, homeowners or businesses need to have their Solar panels installed by accredited installers and ensure the system meets certain standards and regulations. The installation company will typically handle the paperwork and assist with the Rebate application process.
It’s important to note that Solar rebates are separate from feed-in tariffs, which are payments received for excess electricity generated and fed back into the grid. Feed-in tariffs are typically offered by electricity retailers and vary depending on the state or territory.
Overall, Solar rebates in Australia aim to make renewable energy more affordable and increase its adoption. They provide an incentive for homeowners and businesses to invest in Solar panels and contribute to reducing greenhouse gas emissions.