Solar Power Rebates
Federal, State and sometimes even Local Governments have programs in place that can greatly reduce the cost of purchasing a Solar Power System - although sometimes it feels like they've tried to make it as confusing as possible to get them! Our EnviroGroup staff are here to help by taking the stress of rebate applications off your hands. Below you will find an explanation of the various government incentives and how they work.
STCs (Small-Scale Technology Certificates)
Formerly known as RECs, STCs are like a carbon credit and represent the building blocks for the Federal Government's solar incentives scheme. STCs are generated when any type of renewable energy is installed so long as it is installed by a Clean Energy Council certified installer (read about EnviroGroup's installers). The larger the system, the more STCs are awarded and the larger the effective rebate.
Once your system is installed and you've got your STCs, they can be traded on the open market for a dollar value - much like you would trade a share on the stock exchange. Normally, clients elect to have their installer trade their STCs on their behalf. In exchange, the installer gives the customer a point of sale discount for their STCs (this means the customer doesn't have to endure the often painful STCs trading process). By trading your STCs, you receive a substantial discount on your Solar power system.
The number of STCs you receive for your system depends on the size of the system, where you live in Australia and whether you are eligible for Solar Credits. Solar Credits are essentially bonus STCs that you receive for the first 1.5kW of solar power you install (read on to learn more about Solar Credits Scheme).
Click here to read more about STCs.
Solar Credits Scheme
The Solar Credits Scheme is the incentive that replaced the old cash rebate. It works by multiplying the number of STCs (formerly known as RECs) you would normally receive for installing solar power. However, the multiplier is only applicable for the first 1.5kW of any system installed. So if you install a 5kW system, the STCs you receive for the first 1.5kW will be increased by the current Solar Credits multiplier while the remaining 3.5kW will be calculated according to the standard STC calculation method of 1 STC per megaWatt-hour of electricity the system will produce over a 15 year period.
The solar credits scheme is being gradually phased-out between July 2011 and July 2013.
Learn more about the Solar Credits Scheme and STCs
The Victorian Feed-in Tarrif
When your solar power system produces more solar electricity than is being used in the home or building, this excess electricity is exported back to the grid and counted as a credit towards you bill. The Victorian State Government has mandated that all electricity retailers must award a Feed-In Tariff to solar households for exported electricty. Households are now being offered a 'Transitional Feed-In Tariff' (TFIT) for new solar installations. This guarantees a minimum of $0.25 per kiloWatt/hour exported however different electricity retailers may offer different tariffs. Be sure to shop around.
Some electricity retailers will pay you for your exported power, while others will simply credit the value of the power you produce against your bill, to be used at another time. Be sure to check with your current energy retailer and shop around for a better deal if you are not happy as some offers from electricity retailers are better than others. Once you choose your retailer and notify them of your intention to install solar, they will arrange the installation of a bi-directional Smart Meter. This Smart Meter will monitor the electricity used in your house as well as the electricity you export to the grid - giving you access to the feed-in tariff.
