Solar Panel Rebate - New 2024 Guide
The federal government’s solar panel incentive, which turns out isn’t exactly a rebate (we’ll dive into that shortly), acts as an upfront discount for accredited solar systems that qualify. Known as the Small Scale Renewable Energy Scheme (SRES), the government initiative slashes the initial expense of installing solar panels by $431 for every kWh. This reduction is grounded in the trading price of STCs, which stands at $39.
Under the scheme, solar systems are entitled to Small-scale technology certificates STC’s. The number of certificates that can be created per system is based on its geographical location, installation date, and the amount of electricity the system generates.
One STC is equal to 1 megawatt hour of renewable electricity either generated or displaced by the end of the deeming period. Another way to say it is, how much power your solar panel system will generate between now and the end of 2030, which is when the scheme ends. It’s sounds complex, well it is a little, but lets have a look at how you would calculate your rebate amount.
How is the STC rebate calculated?
The STC rebate is calculated with the following formula:
Solar system size (kW) x Zone Rating x Deeming Period (years) = Number of STCs (rounded down) X STC price.
Example: 6.6kW x 1.382 (postcode 2162 in zone 3) x 8 years = 72 x $39.50 = $2,844
Why 8 years? Because the STC rebate Scheme finishes at the end of 2030, so it has 8 years left. Every year the number of STC’s small technology certificates reduces. The rebate amount is paid on the number of kWh produced by your system until 2030.
Solar Rebate Calculator
Solar panel rebate by state
Firstly it depends on the state you’re living in and secondly how large scale your solar system is. Because different regions experience different sunlight conditions, the value of Small Scale Technology Certificates (STC’s) will vary depending on the size of the solar energy system and the location.
Here is a quick look at the rebate on a 6kw system by state
| State | System size | Zone | Zone rating | Rebate |
|---|---|---|---|---|
| New South Wales | 6KW | 3 | 1.382 | $2,279 |
| Queensland | 6KW | 3 | 1.382 | $2,279 |
| Victoria | 6KW | 4 | 1.185 | $1,926 |
| South Australia | 6KW | 3 | 1.382 | $2,279 |
| Western Australia | 6KW | 3 | 1.382 | $2,279 |
| ACT | 6KW | 3 | 1.382 | $2,279 |
| Northern Territory | 6KW | 1 | 1.622 | $2,672 |
| Tasmania | 6KW | 4 | 1.185 | $1,926 |
What are Small-Scale Technology Certificates (STC’s)?
The small-scale technology certificate program is the way homeowners and installers can trade as a commodity in exchange for money after installing a residential solar system.
The current price for a single certificate is currently $36.20 (*May 2019) and your state will give you a certain number of certificates redeemable for cash depending on how many kilowatts of power you install.
These credits are also available for solar hot water systems.
Zone Rating for small-scale solar panels.
| Zone | Rating |
|---|---|
| 1 | 1.622 |
| 2 | 1.536 |
| 3 | 1.382 |
| 4 | 1.185 |
Resource: Visit our homepage for more articles on STC zones, rebate end dates and ROI on solar.
Who applies for the rebate me or the installer?
In reality, you really won’t have to apply for or even think about the solar rebate as your installer will look after everything for you.
In fact, they have already priced your solar system installed including the rebate. So the rebate on a 6kW solar system will be $2,633.
Example:
6kWh solar system cost: $ 9,342
Rebate = $39.90 x 66 (STC’s): $2,633
You pay: $6,709
The cost of acquiring the STCs keeps on changing relative to the demand and supply of the renewable energy certificate market. Additionally, the STCs differ in each state and depending on the level of solar PV panels. Your installer will be up to date on this and again, will price your system accordingly.
Is the solar rebate ending anytime soon?
In short yes, the solar rebate will end, But don’t stress it’s not for another 13 years. The solar rebate program is getting phased out slowly over 15 years starting 1st January 2017. So the rebate will reduce by 1/15th each year until it ends in 2032.
So there is still PLENTY of time left and lots of free government money for solar panels to make it more than worthwhile to get solar installed today.
Rebate by state for small-scale renewable Energy scheme
| System size | STC’s | States | Rebate |
|---|---|---|---|
| 1.5 kW | 14 12 | NSW, QLD, SA, WA, VIC, TAS | $550 $472 |
| 4 kW | 38 33 | NSW, QLD, SA, WA VIC, TAS | $1,493 $1,297 |
| 5 kW | 48 41 | NSW, QLD, SA, WA VIC, TAS | $1,886 $1,611 |
| 6 kW | 58 49 | NSW, QLD, SA, WA VIC, TAS | $2,279 $1,926 |
| 7 kW | 67 58 | NSW, QLD, SA, WA VIC, TAS | $2,633 $2,279 |
| 10 kW | 96 82 | NSW, QLD, SA, WA VIC, TAS | $3,773 $3,223 |
Solar system rebate prices by state
Solar system rebates for Victoria
With the labour government’s recent election in Victoria, there is a lot of movement when it comes to new solar rebates and schemes. They are the only state currently offering a rebate on solar batteries as well as the panels and inverters.
Eligible homeowners will get up to a 36% rebate depending on the size of their system, with the rebate being capped at a 100kW system.Â
It is worth bearing in mind that the solar rebate in Victoria will be reduced each year for the next 13 years, which is when the solar rebate scheme will end in 2032.
Solar power rebate in VIC by system size
| System size | STC’s | STC spot price | Rebate |
|---|---|---|---|
| 2 kW | 16 | $39.30 | $629 |
| 4 kW | 33 | $39.30 | $1,297 |
| 5 kW | 41 | $39.30 | $1,611 |
| 6 kW | 49 | $39.30 | $1,926 |
| 7 kW | 58 | $39.30 | $2,279 |
| 10 kW | 82 | $39.30 | $3,223 |
Solar rebates New South Wales
The solar rebate awarded in NSWÂ will depend on the number of STC’s and the size of the system you install. The STC price has been hovering between $35 and $40 for the last couple of years. At the current price of $39.90Â a 5kW solar system will give you a rebate of $2,195. A 6kW solar system will you get a rebate worth $2,633 and a 10kW solar set up gives you a rebate of $4,389.
The bigger the system, the bigger the rebate.
Solar power rebate in NSW by system size
| System size | STC’s | STC spot price | Rebate |
|---|---|---|---|
| 2 kW | 19 | $39.30 | $747 |
| 4 kW | 38 | $39.30 | $1,493 |
| 5 kW | 48 | $39.30 | $1,886 |
| 6 kW | 58 | $39.30 | $2,279 |
| 7 kW | 67 | $39.30 | $2,633 |
| 10 kW | 96 | $39.30 | $3,773 |
Solar rebates available in Western Australia
The Western Australian government says that solar power rebates should be abolished. Currently, there are no rebates for a solar set-up in WA. Citizens interested in the rebates can apply for the rebates offered by the Federal government. Approximately 250,000 households in Western Australia have installed solar PV panels already.
In Western Australia, you can apply for the federal government solar rebate. The more large scale of your power system, the more power it produces, hence more rebates.
Solar power rebate in WA by system size
| System size | STC’s | STC spot price | Rebate |
|---|---|---|---|
| 2 kW | 19 | $39.30 | $747 |
| 4 kW | 38 | $39.30 | $1,493 |
| 5 kW | 48 | $39.30 | $1,886 |
| 6 kW | 58 | $39.30 | $2,279 |
| 7 kW | 67 | $39.30 | $2,633 |
| 10 kW | 96 | $39.30 | $3,773 |
Solar system rebates available in Queensland
The local government is not giving solar rebates in QLD, rather, it is giving out interest-free loans and grants for the system’s installation to eligible customers. Application for solar grants and loans will close on 30 June 2019 or if the funding is exhausted.
The government of Queensland gives loans and grants without any interest in solar panel installation and storage. With the federal government scheme, the rebate you get for solar power depends on the energy the system produces.
Solar power rebate in QLD by system size
| System size | STC’s | STC spot price | Rebate |
|---|---|---|---|
| 2 kW | 19 | $39.30 | $747 |
| 4 kW | 38 | $39.30 | $1,493 |
| 5 kW | 48 | $39.30 | $1,886 |
| 6 kW | 58 | $39.30 | $2,279 |
| 7 kW | 67 | $39.30 | $2,633 |
| 10 kW | 96 | $39.30 | $3,773 |
Solar power rebates South Australia
The South Australian government rebates are offered on solar for up to 100kW systems or $44,090. The most popular size system for residential homes is 6.6kW, which has a rebate of $2,873.
There is also a separate solar battery rebate in SA of up to $3,000. This amount is higher for lower-income households.Â
The government has set aside $100 million for solar panels and battery storage and will be available until 2030 when the scheme will be phased out.
To claim your solar rebate in SA, it’s as simple as just purchasing a solar system from a local certified installer. Installers advertise prices including the rebate which they claim after installation.
Solar power rebate in SA by system size
| System size | STC’s | STC spot price | Rebate |
|---|---|---|---|
| 2 kW | 19 | $39.30 | $747 |
| 4 kW | 38 | $39.30 | $1,493 |
| 5 kW | 48 | $39.30 | $1,886 |
| 6 kW | 58 | $39.30 | $2,279 |
| 7 kW | 67 | $39.30 | $2,633 |
| 10 kW | 96 | $39.30 | $3,773 |
Solar rebates in Tasmania
The solar power rebate in Tasmania is still available through the Renewable Energy Target Scheme (RET). Compared to other states in Australia, Tasmania does not get adequate sunlight. However, the solar setup will still do well here. The government of Tasmania through the Tasmanian Energy Efficiency Loan Scheme (TEELS) is giving out loans to enable residents to adopt the use of solar power.
The federal government offers rebates for solar setup according to the amount of energy generated. The government is issuing rebates for systems with less than 100KW solar systems. Households and businesses in Tasmania will save 50 cents on every single watt used.
Solar power rebate in TAS by system size
| System size | STC’s | STC spot price | Rebate |
|---|---|---|---|
| 2 kW | 16 | $39.30 | $629 |
| 4 kW | 33 | $39.30 | $1,279 |
| 5 kW | 41 | $39.30 | $1,611 |
| 6 kW | 49 | $39.30 | $1,926 |
| 7 kW | 58 | $39.30 | $2,279 |
| 10 kW | 82 | $39.30 | $3,223 |
Solar rebates in th Australian Capital Territory
The rebate for solar panels in the ACT is very similar to in NSW. Rebates are for homeowners or businesses who install solar panels and or a solar battery.Â
Rebates are calculated based on the size of the system you install, and the current prices of STC’s.Â
In a nutshell, the program gives homeowners up to $5,000 rebate on their solar system. $2,500 discount off the price of the system, then the option to pay for the rest with an interest-free loan.
Solar power rebate in the ACT by system size
| System size | STC’s | STC spot price | Rebate |
|---|---|---|---|
| 2 kW | 19 | $39.30 | $747 |
| 4 kW | 38 | $39.30 | $1,493 |
| 5 kW | 48 | $39.30 | $1,886 |
| 6 kW | 58 | $39.30 | $2,279 |
| 7 kW | 67 | $39.30 | $2,633 |
| 10 kW | 96 | $39.30 | $3,773 |
Solar rebates in the Northern Territory
The solar rebate scheme in NT works similarly to the rest of the states. You can receive a rebate of $450 per installed Kilowatt up to $6000. This is actually more generous than other states.
The scheme is open to homeowners, businesses and non-profits in the Northern Territory who want to install a solar system and or battery.
Solar power rebate in NT by system size
| System size | STC’s | STC spot price | Rebate |
|---|---|---|---|
| 2 kW | 22 | $39.30 | $865 |
| 4 kW | 45 | $39.30 | $1,769 |
| 5 kW | 56 | $39.30 | $2,201 |
| 6 kW | 68 | $39.30 | $2,672 |
| 7 kW | 79 | $39.30 | $3,105 |
| 10 kW | 113 | $39.30 | $4,441 |
How do I apply for a government Solar Rebate?
There is no need to apply for a solar rebate. This is something that the installer does on your behalf and is priced into the system cost.
So a typical 6kWh solar system might cost $8,841 fully installed, but the installer will only advertise the system to cost $5,992.
Basically, the advertised price of a solar system includes the rebate discount. There is no need for you to actually apply for the rebate yourself.
Solar rebates are not to be confused with solar Feed-in Tariffs. Once you have your solar system hooked up to the grid, you will need to speak to your energy company about how much money they will pay you to feed your excess power back into the grid.
How Do I Know If Am Eligible For A Rebate?
Generally, across all the states, the eligibility for the solar energy rebate from the federal government is a given and all pretty similar. The following are the general eligibility requirements:
- The solar panels should be eligible for small-scale PV. It should be normal.
- The place of installing a solar power system should be eligible. It means the system should be installed in residential premises such as an apartment, townhouses, a shop or a house.
- The installed system must be a complete and new unit.
- Regardless of the deeming period, the solar credits are created once for one system installation.
- When applying for the STCs, the solar setup should not exceed 1 year from the date of installation.
The eligibility for a rebate in different states:
Victoria
- A combined household income of less than $180,000 per year. Proof of income for the current or previous year should be produced or tax assessment for homeowners.
- Residing in a house that is valued at $ 3, 000,000 which is to be proved by Victorian Council Rates Notice for the past 1 year.
- Should not have any solar PV system installed at the property.
- Use a solar PV system that is approved by the Clean Energy Council.
- The installer should have a clean criminal record in regard to WorkSafe for the last three years.
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South Australia
To be eligible for the solar PV system (home battery scheme) rebate in South Australia, the following requirement should be met:
- Every household in SA is eligible for the rebate, including tenants with the authority of the property owners.
- The battery storage should be Virtual Power Plant ready. Taking part in the VPP is not a must.
- The battery systems should have a minimum storage capacity of 2.5kW.
- The batteries must have a minimum warranty of seven years.
- Retailers who supply and install the systems should have been qualified and approved by the CEC.
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New South Wales
The 3,400 low-income households in NSW who qualify for a rebate can either opt for the rebate scheme or abandon the rebate and get a free 2.5Kw solar system. This scheme will enable the residents and small business owners to save up to $600 annually on electricity bills. To be eligible for a rebate in NSW, you should meet the following requirements:
- You should be already receiving the low-income household rebate
- Do not have an already installed solar PV system.
- You own your house and a roof.
- You should be residing in any of these places: South Coast, Central Coast, North Coast, Sydney South, and Illawarra-Shoalhaven.
You are eligible for the program if you are living or renting in a retirement village, a residential community or a strata building.
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Queensland
The government of Queensland is giving out interest-free loans and grants for solar and batteries. However, this does not affect the eligibility of the rebate for solar power from the federal government.
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Western Australia
The Western Australian government has a very limited solar energy rebate for the solar PV system. However, you can apply for the rebates offered by the federal government. Check the federal government’s eligibility for solar rebates.
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Northern Territory
- To be eligible for the solar rebate in NT, the system should be installed by a professional who is approved by the Clean Energy Council.
- The system should have the approval and meet the standards of the Clean Energy Council.
- Remember to attach all the necessary documentation.
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Tasmania
The government of Tasmania did not have a domestic solar rebate in 2019. The Tasmania government offers interest-free loans to individuals and businesses under the Tasmanian Energy Efficiency Loans Scheme (TEELS). However, this does not affect the solar rebates from the federal government.
How do I get my solar rebate?
To claim your solar rebate, you need to follow this procedure:
- Download the STC form from any certificate and rebate companies in your respective state. Read the form and duly fill it in giving accurate information.
- Attach all the documents requested in the form. Attach a clear photo of the tank serial number. Additionally, issue out a copy of the site map showing the location of the tank.
- After duly filling in the form, send it back to the certificates trading company you obtained it from.
- The certificate trading company will process your payments.
The STCs should be created not later than 12 months after the solar PV system installation.
What is the Difference between Rebate, Grants and Tax Credit?
Solar Rebate – In most cases, the rebate is used by sellers to promote more sales and reduce the cost to the customer. They are a reimbursement or refund of the money spent on a particular commodity. In this case, to install solar power system. The STC scheme will enable the residents to save a lot of money on the solar power system installation.
Solar Grants – Grants are non-repayable money issued to the party by the government towards a certain project. It is given absolutely free of charge. The governments of Tasmania and Queensland are offering grants to the eligible residents.
Solar Tax Credits – this is the amount of money that a taxpayer can deduct from the taxes owed to the government. For instance, if you install the solar power system, 30% of all the costs incurred, can be claimed as part of the federal tax return. This scheme will expire in 2022. This is a way of the government rewards you for installing a solar power system.