The Australian government offers several Solar Rebate programs to support the adoption of Solar power systems. The most prominent one is the Small-scale Renewable Energy Scheme (SRES), which provides financial incentives to individuals and small businesses installing eligible Solar power systems, including Solar panels and Solar hot water systems.
Under the SRES, participants receive Small-scale Technology Certificates (STCs) for their Solar power system installations. The number of STCs received depends on the system’s size, location, and the amount of renewable energy it is expected to generate over its lifetime. These STCs can then be sold or traded to liable entities such as electricity retailers, who are required by law to surrender a certain number of certificates each year.
The value of STCs is not fixed and can vary depending on market demand and supply. Generally, the more Solar power systems installed, the lower the value of STCs. However, the upfront financial benefit provided by the STCs can significantly reduce the cost of installing a Solar power system.
In addition to the SRES, some state governments and territories also offer their own Solar Rebate programs. These programs may provide additional financial incentives or grants to further reduce the cost of installing Solar power systems.
Solar rebates in Australia aim to promote the adoption of renewable energy and reduce reliance on fossil fuels. By making Solar power more affordable, households and businesses are encouraged to invest in sustainable energy generation, leading to a reduction in greenhouse gas emissions and a shift towards a cleaner energy future.