The Australian government implemented a financial incentive called the Small-scale Renewable Energy Scheme. Under this scheme, individuals and small businesses are offered a financial incentive to install small-scale renewable energy systems such as solar panels.
The price is determined through Small-scale Technology Certificates (STC’s). STC’s are an electronic form of currency under the Renewable Energy Target (RET) scheme. This form of currency can be created upfront for every 1MWh of electricity the system is expected to generate over a certain amount of years. This means that individuals and businesses can get an up-front discount on their PV system upon installation. This is referred to as a ‘point of sale’ discount.
As a general guide, the value of STC’s can range from $16 – $40, however they are currently sitting at $36 – $37. STC’s value fluctuate depending on factors such as market demand and changes in Government.
Okay, so why is the price of solar increasing?
The amount of STC’s a solar system is granted decreases at the start of every year. This will continue to happen until the year 2030. This is referred to as the deeming period decline under the Renewable Energy Target scheme.
With the number of STC’s decreasing each year, the price individuals and businesses pay for Solar increases. As this is a federal scheme, it affects all residents of Australia.
Changes to the Victorian Solar Rebate
Eligible Victorians can currently claim a rebate of up to $2,225 for a solar PV system installation through the Victorian Solar Panel Rebate Scheme. As of January 1st, 2020, the Victorian Solar Rebate will drop to $1,880 which means the price Victorians pay for solar will increase in the new year.
How to maximise the most out of the government incentive
With government schemes changing in 2020, the price you would pay for solar will increase by the time New Year’s Day comes around. If you are interested in installing solar panels, doing so before January 1st 2020 would guarantee you the best price possible.
If you would like to chat with someone about how the rebates can be applied to your personal solar requirements, please call us on 1300 28 29 30.