The Australian government offers various Solar rebates to promote the adoption of renewable energy and reduce greenhouse gas emissions. The two main types of Solar rebates in Australia are Small-scale Technology Certificates (STCs) and the Large-scale Renewable Energy Target (LRET).
1. Small-scale Technology Certificates (STCs): These are a form of tradeable certificates that are created for eligible Solar panel systems, small wind systems, and Solar water heaters. The number of STCs issued depends on the system’s size, location, and the amount of renewable energy it is expected to generate over its lifetime. STCs can be sold to electricity retailers, who are legally required to purchase a certain number of certificates each year. The value of STCs can vary based on market conditions and the supply and demand for certificates.
2. Large-scale Renewable Energy Target (LRET): This scheme is designed to encourage the development of large-scale renewable energy projects, including Solar farms and wind farms. LRET creates a financial incentive for power stations and large-scale renewable energy systems by requiring electricity retailers to purchase a specific amount of renewable energy each year. These purchases are made through the purchase of Large-scale Generation Certificates (LGCs), which are created for each megawatt-hour of eligible renewable energy generated. The revenue generated from the sale of LGCs helps to reduce the upfront cost of developing large-scale renewable energy projects.
In addition to these federal government schemes, some states and territories in Australia also offer their own Solar rebates and incentives. These can include additional financial incentives, such as feed-in tariffs, which allow Solar system owners to sell excess electricity generated back to the grid at a premium rate.
Overall, Solar rebates in Australia play a crucial role in making Solar panels and other renewable energy systems more accessible and affordable for individuals and businesses, helping to increase renewable energy capacity and reduce reliance on fossil fuels.