What is the Australian Government Solar Rebate?
The Australian Solar Rebate, also called STC Rebate, is part of the Australian Government’s Small-scale Renewable Energy Scheme (SRES).
This solar rebate was introduced to boost the industry and make solar more affordable. The rebate is calculated to reduce every year, to “wean” Australians off the rebate. This is because as the technological capabilities of solar increase, the cost of solar decreases.
What is an STC?
STC stands for Small-scale Technology Certificate. It is essentially a “coupon” that gives you a discount off the total cost of your solar system.
Each system will get different STCs. It’s all about the amount of renewable energy the system will generate.
STCs are a part of a complicated financial trading system, which is why most providers, including the team here at Econnect Solar, calculate the STCs on behalf of the home owner.
How is the Government Solar Rebate Calculated in 2021?
As we mentioned above, the Solar Rebate reduces every year the scheme is in place. Introduced in January 2017, the rebate reduces by 1/15th every year until it ends in 2032.
Calculating the discount you will get on your system is a combination of four factors:
1. The size of your solar system in KW
2. The number of years left in the scheme
3. The location of the solar installation
4. The current value of STCs
Specifically, the formula for calculating how many STCS you will get looks like this:
Size of System in KW x Years Left in Rebate x Area
The government have a nifty tool here that you can use to calculate the number of STCs you will get based on your install date, area and system size.
We decided to use the East Maitland, NSW Postcode of 2323 with a standard 6.6KW system installed on 23rd April 2021, and calculated 91 STCs.
With the average STC value currently around $38, that means you could be eligible for a discount of $3,458.
Who Can Claim The Solar Rebate?
Before you get too excited, remember that claiming the solar rebate is only available to homeowners who meet the following eligibility requirements:
- The solar system must be less than 100kW
- A Clean Energy Council (CEC) member must install your solar system
- Solar panels and inverter approved by the Clean Energy Council
As a Clean Energy Council member, we have saved our customers millions of dollars using the STC rebate and are on a mission to save millions more.
Want to set up a free energy assessment? Get in touch.
The Risk Of Fluctuating STC Value
One thing you need to know about STCs is that their value fluctuates with market conditions, and in the worst case scenario it could be $0, although this is highly unlikely.
However, if the STC value suddenly drops it can take homeowners by surprise, pushing up the price of a solar system. To eliminate this risk for our customers, the Econnect Solar team offer a fixed STC value.
Could The Rebate End Early?
Besides the fluctuating STC value, another risk is the possibility of the rebate ending early. Coalition MP Craig Kelly has been at the forefront to boost coal’s image. Kelly wants the solar rebate gone.
Kelly hasn’t been alone in his plans for the solar rebate. The ACCC (Australian Competition and Consumer Commission) has reported that Australia’s solar rebate should be ended early.
“The ACCC believes that the subsidy of small-scale installations is no longer required given the dramatic fall in the cost of solar installations.”
If you’re looking to get solar for your home, now is the time to do it. Before the ACCC and the COALition succeed in their attempts to ditch the rebate, and while the rebate is still over $4000.
With our Match My Bill plans you can also make sure you’re not out of pocket. Your personalised finance repayments ensure you pay no more than your current bill.
Ready to calculate your solar savings?