There are two main types of Solar rebates in Australia:
1. Small-scale Technology Certificates (STCs): STCs are a form of tradeable currency created under the Small-scale Renewable Energy Scheme (SRES). When a Solar energy system is installed, it generates a certain number of STCs based on its capacity and location. These STCs can be sold to electricity retailers, who need to purchase a certain number of certificates each year to meet their renewable energy obligations. The value of STCs fluctuates depending on market conditions, but they can significantly reduce the upfront cost of installing Solar panels.
2. Feed-in Tariffs (FiTs): FiTs are a payment made by electricity retailers to Solar system owners for the excess electricity generated by their system and fed back into the grid. The rate at which the electricity is purchased is usually higher than the retail price of electricity, providing an incentive for Solar system owners to export their excess electricity. FiTs can vary depending on the state or territory and the size of the Solar system.
Both STCs and FiTs can help make Solar energy systems more affordable and financially viable for homeowners and businesses. These rebates not only encourage the adoption of renewable energy but also contribute to reduced greenhouse gas emissions and a more sustainable energy future in Australia.