Insight into Federal and State Solar Rebates in Australia
An Insight into Federal and State Solar Rebates in Australia
In today’s world, solar power is a popular choice to overcome the challenges of high cost and limited availability of non-renewable energy resources. Embracing solar energy means taking a step forward to a greener world by reducing carbon footprints. In the long run, solar is also affordable for both residential and commercial places. However, the initial cost of installing solar panels in both residential and commercial places is expensive.
Installing a solar system that produces 6.6 KW of energy could cost between $5000 and $9000 in Australia. The cost may further increase depending on factors such as panel quality, installer rate, location, and more. So, why should homeowners or businesses consider solar installation if the cost is so high? In such a scenario, are available to ease the financial burden on solar installations.
What Is the Solar Tax Credit (STC)?
A solar tax credit is a financial incentive, rolled out by the Australian federal government to support individuals and businesses that embrace solar power. Incentives for solar are available in Australia at both the federal and state levels.
More than 4 million Australian residents have embraced solar and benefited from the tax credits or rebates. Overall, offering rebates or tax credits is an excellent way of encouraging homeowners to switch to solar for a greener future.
How Does the Tax Rebate for Solar Work?
There are In the following section, let us analyse different schemes that offer tax rebates on solar.
There are multiple schemes to support people and organisations that embrace solar.
- Small-Scale Renewable Energy Scheme (SRES)
The SRES offers rebates to people who install solar systems that generate power up to 100 KW. Instead of cash rebates, this scheme offers upfront assistance on solar installation through the solar tax credits.
Once the solar panels are installed, you can sell the tax credits to offset some of the installation cost. In this case, the solar tax credits work as currencies that can be sold or exchanged to pay a part of the solar installation cost.
It is noteworthy that tax credits depend on the amount of total renewable energy that will be generated by the solar panels over a period of time. Nevertheless, the rebate depends on the location where you live. Typically, Australia has four rebate zones, depending on the sunshine. Areas that receive sunshine longer will get more solar tax credits. For example, the solar tax credit will be higher for Queensland compared to the tax credit in Victoria.
- Large-Scale Renewable Energy Targets (LRET)
LRET, the acronym of Large-Scale Renewable Energy Target, is a scheme introduced to support big commercial solar projects. Commercial solar installations that are expected to produce over 100 KW can leverage this scheme for cost-effectiveness.
Instead of a one-time subsidy through solar tax credits, this scheme releases Large-Scale Generation Certificates. Businesses can utilise these certificates to generate a regular source of income. For example, business owners can sell or trade these certificates for their financial benefit.
The market value and demand of these certificates have been driven by the obligated entities. For example, electricity retailers need to buy these certificates to fulfil their renewable energy obligations. Besides the electrical retailers in Australia, private entities can also purchase these certificates from the businesses.
State-Wise Solar Rebates in Australia
The solar rebate system in Australia varies from one state to another. Therefore, both residential and commercial solar investors can find different benefits depending on their locations. In the following section, let’s explore how the rebates and benefits vary from one state to another.
1.New South Wales
- Solar Rebate: Solar installation up to 6.6 KW capacity can fetch a rebate of around $2160.
- Batteries: In NSW, there are battery rebates available to reduce battery costs of potentially up to $2400 if you invest in solar.
- Low Income Rebate: The eligible concession care holders in W can receive a rebate on electricity up to $350.
- Energy-Saving Scheme: Besides encouraging solar installation, NSW offers subsidies under different schemes for homeowners who adopt energy-efficient lighting, air conditioning, etc.
2. Victoria
- Solar Rebate: In Victoria, installation of solar capacity up to 8 KW
- Victorian Solar Panel Rebate: A flat discount of $1400 is available for people who purchase new solar panels. In case you want to replace or upgrade solar panels which are over 10 years old, the same discount is also available to you.
- Solar Battery: Instead of a discount or incentive for solar batteries,
- VEU Program: Victorian Energy Upgrades (VEU) program encourages homeowners to replace their old appliances with the latest energy-efficient ones. In such cases, the buyers will receive a state-funded discount under the VEU program.
3.Queensland
- Federal Solar Rebate: Solar installation with a capacity up to 6.6 KW can fetch a rebate for the residents of Queensland.
- Community Solar Banks: Residents in Townsville and Caloundra can participate in the Community Solar Banks program for a shared solar arrangement. Such arrangements prove cost-saving for many homeowners.
- Brisbane City Council: Organisations in the Brisbane City Council can apply for the sustainability grants for their solar installations and upgrades.
4.Western Australia
- Solar Rebate: Solar rebates are available in Western Australia. Businesses and individuals can apply for the tax credits on solar installations till 2030.
- WA Battery Rebate: As per the new program, people investing in solar could enjoy up to a $7500 discount.
5.South Australia
- Solar Rebate: Solar rebates in SA are typically around $2633 for solar systems installed up to 8.5 KW capacity.
- Residential Solar PV Rebate: Tenants, concession card holders, and strata-managed residential properties can apply for the discounts on the new solar installation.
- Shared Solar Rebate: Residents in South Australia are eligible to apply for further rebates if they choose shared solar installation. The rebate is 20%, which can be as much as $20000 per site.
6.Solor Rebates TAS
- Solar Rebate: The solar rebate program in Australia applies to organisations and individuals living in Tasmania.
- Energy Saver Loan: Residents in the TAS region are eligible for an interest-free loan up to $10,000 for their energy-efficiency projects. You can get a loan for purchasing solar batteries, EV chargers, new solar systems, and more.
7.Australian Capital Territory (ACT)
- Solar Rebate: The Australian Capital Territory (ACT) rebates available in other regions or territories in Australia.
- Home Energy Rebate: Get up to a $2500 discount on the solar installation cost with the home energy upgrade rebate program available in ACT.
- Sustainable Household Scheme Loan: Residents in the ACT region can avail up to a $15000 loan for solar installation, solar battery purchase, home energy upgrades, and more.
8.Northern Territory
- Solar Rebate: The Australian Capital Territory (ACT) rebates available in other regions or territories in Australia.
- Home Energy Rebate: Get up to a $2500 discount on the solar installation cost with the home energy upgrade rebate program available in ACT.
- Sustainable Household Scheme Loan: Residents in the ACT region can avail up to a $15000 loan for solar installation, solar battery purchase, home energy upgrades, and more.
- Solar Rebate: The Australian Capital Territory (ACT) rebates available in other regions or territories in Australia.
- Home Energy Rebate: Get up to a $2500 discount on the solar installation cost with the home energy upgrade rebate program available in ACT.
- Sustainable Household Scheme Loan: Residents in the ACT region can avail up to a $15000 loan for solar installation, solar battery purchase, home energy upgrades, and more.
How Can You Claim the Rebates?
People considering solar installations can claim rebates in two ways. Firstly, you can check the schemes yourself and decide on the most suitable one. Secondly, you can consult a professional solar installer to find the most suitable solar incentive programs for you. The solar installer will help you with the process of applying for the credits and rebates.
Bottom Line
So, homeowners and business owners in Australia considering solar installation can apply for the grants, incentives, and rebates as discussed above. Investing in solar is crucial to reduce conventional electricity consumption. At the same time, it is essential to protect the natural non-renewable resources for future generations. The concern is that solar does not come at an affordable price. Harnessing the tax credits and incentives can help reduce your budget woes when considering solar installation or upgrade.