The subsidy doesn’t come directly from the government but is based on STCs or ‘small-scale technology certificates’ – a type of renewable energy certificate issued by the government. These certificates are bought and sold on the energy market and change in value depending on demand and supply.
When you install solar, you become a ‘renewable energy generator’ and are entitled to a certain number of STCs. How many depends on your system size, the year of installation and the location – as a region that can generate more solar power means more certificates.
Your retailer or installer sells your certificates on the market for you and deducts their value from the cost of your system – in effect giving you a substantial discount.
To qualify for the subsidy, your solar panels must be approved by the Clean Energy Council (CEC), and the system designed and installed by a CEC-accredited professional.
The subsidy also only applies to systems up to 100 kW in size. However, you can use it for multiple properties – which could be great if you have a holiday home or you are a landlord.
There is often talk that it is about to be scrapped, but this isn’t correct.
It is being gradually phased out up to the end of 2030 though, by reducing the level of subsidy you can get each year up until then.
However, the cost of solar panels is also reducing.
– Victoria – solar rebates of up to $1,850.
– NSW – interest free loan up to $14,000 for Battery Storage and Solar PVfree 3kW
systems for some low income households.
– SA – Up to $3,000 subsidy for battery storage. The ACT – 50% subsidies for low income households capped at $2,500.
You don’t need to do anything to claim the STC discount, other than use a reputable Solar PV Retailer installer who will claim it on your behalf.
You will however need to apply through your state or territory government for any state-based subsidies.
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