As well as the environmental benefits, the potential to save money is a big incentive for adding solar power to your home or office. For starters, powering some or all of a property with solar gives you a way to save on your electricity bills.
But beyond that, you could also be eligible for government rebates and other financial incentives that help make solar more cost-effective. So, let’s take a look at what’s on offer.
In this New Year 2020 there is a change in solar rebate, But solar power system buyers will not see any big impact on pricing part.
While there are some companies advertising about the solar rebate ending on December 31 last year, this is not the case. This might have some people getting confused, so we took time in summarizing it about Residential Solar Panel Installation and Commercial Solar Panel Installation
Australia’s “solar rebate” (more accurately, a subsidy) is based on virtual bits of paper called Small-scale Technology Certificates, or STCs. These certificates have a value – around $37 each at the moment; but their value fluctuates with market conditions.
Certificates eligibility is based on mainly three factors
- Solar panel capacity
- Location of solar panel installation
- Year of installation
Instead of tussling with the formula for how the number of certificates is calculated, it’s much easier just to use the online solar calculator available; which will also tell you what the subsidy could be worth to you.
While STCs can’t be created until after a system is installed, the value of the rebate is offered as an up-front discount and any pricing you see advertised for systems will have the subsidy value already subtracted.
The reason the year a solar power system is installed plays a role in the number of STCs it is eligible for is because one of the multipliers used in the solar rebate formula is the “deeming period”. This is being reduced by one year each year on January 1; so as 2020 has just landed, that has occurred. Assuming things stay their course, the subsidy will cease to exist on January 1, 2031.
But you’ll probably notice prices on systems towards the end of last year won’t be much different now just because it’s January – this is because quotes in December would often have been based on installation occurring this month. Furthermore, the cost of solar power systems has continued to decrease.