Solar rebates in Australia are typically provided through the Small-scale Renewable Energy Scheme (SRES), which is a part of the Renewable Energy Target (RET) program. The SRES provides financial incentives in the form of Small-scale Technology Certificates (STCs) to eligible Solar system owners.
Under the SRES, when a household or business installs a Solar energy system, they can create STCs based on the amount of electricity the system is expected to generate over a 15-year period. These STCs can then be sold to electricity retailers or other buyers, who are required by law to purchase a certain number of STCs to meet their renewable energy targets.
The number of STCs that can be created depends on factors such as the size of the Solar system and the geographical location of the installation. The value of each STC is determined by market demand and can fluctuate over time.
The monetary value of the STCs can be deducted from the upfront cost of the Solar energy system, reducing the financial burden on the system owner. This effectively acts as a subsidy provided by the government to incentivize the adoption of Solar energy.
It is important to note that the SRES is subject to periodic reductions in STC multiplier values, known as “deeming periods,” which gradually reduce the number of STCs that can be created for a Solar system. This reduction is intended to reflect the decreasing cost of Solar panel installation over time.
In addition to the SRES, some state governments and territories in Australia also provide additional Solar rebates and incentives. These can include grants, feed-in tariffs, and low-interest loans to further support the installation of Solar energy systems.
Overall, Solar rebates in Australia play a crucial role in promoting the adoption of renewable energy and reducing greenhouse gas emissions. By making Solar panel installation more affordable, these rebates encourage households and businesses to invest in clean energy solutions and contribute to a more sustainable future.