In February 2018, the Australian Competition and Consumer Commission (ACCC) announced they were focussing on the energy industry and would be making recommendations for reform within the industry in their final report expected at the end of June 2018. As a result of this report, they have made the recommendation to phase out the upfront solar rebate under the Small-Scale Renewable Energy Scheme.
Phasing out this rebate will cause the price of residential solar systems to increase for homeowners, making it harder for homeowners to adopt technology which will reduce their dependence on the overwhelmed grid and in turn energy bills for households. Initially, the Small-Scale Renewable Energy Scheme was arranged to end in 2030, this new recommendation means that this scheme will be phased out in 2021, more than nine years before its scheduled finish date.
What is the Small-Scale Renewable Energy Scheme Rebate?
For your residential solar PV system, your rebate is applied in the form of Small-Scale Technology Certificates (STC’s) each holding a dollar value and the rebate that your system entitles you to is determined by the size and location of the installation. The certificate values are regulated by the Clean Energy Regulator. With the value of STCs falling through recent years, the adoption and access to solar technology for homeowners has been more challenging for households with higher energy bills, struggling to keep up with repayments but aspiring to adopt this cutting-edge technology.
What is the value of your upfront STC rebate?
Depending on the size of your solar system and the location at which it will be installed, the rebate that you are entitled to may vary. For example, if your location grants you a STC rebate worth $37 each and you install a 5kW solar system, this will entitle you with $2849 off* the price of the solar system. This rebate is applied to the purchase price of your solar system. Without this rebate, the price for residential solar increases for homeowners. To find out how much you can save on your solar system installation, contact Sunbank Solar.
Why the change to the upfront solar rebate?
With the incredible uptake of solar renewable energy in Australia, the ACCC believe that the solar rebate systems were too generous for Australian households and are considering ending the rebate more than nine years before its pre-determined finishing date.
Take advantage of your solar PV system upfront rebate before it’s scrapped! Contact Sunbank Solar for all your residential solar installations on 1300 28 29 30.
To learn more about the Australian Competition and Consumer Commission recommendations, you can read their final report here.
*Rebate value calculated with a system size of 5kW installed in STC Zone 4. Value correct as of July 2018.