In Victoria, there are primarily two ways you can reduce the price of your residential solar panel installation. The first is via the small-scale technology certificates and the second is by accessing the solar power rebate. Let’s take a look at each of these in turn, so you can make an informed decision for your installation.
Small-scale technology certificates (STCs)
These are created when your system is installed, and their value differs according to market conditions. These certificates are provided under the small-scale renewable energy scheme and the number of certificates you receive is based on your location, installation date and the capacity of the system you are acquiring.
Generally, you don’t have anything to do with these certificates, as they as already included in the quoted purchase and installation costs of your system. You simply sign the certificates over to the vendor who makes their own claim against the certificates. The date of your installation is important because this rebate reduces every year on January 1st, finally ending in 2031. So, the earlier you install your system, the greater the value of the rebate you will receive.
The amount of this yearly reduction in STCs is not huge, usually around $300 to $400, but it’s still money in your pocket. To take advantage of this it’s imperative to move fast, but you should still do your homework and ensure you purchase the best quality system according to your needs.
Solar panel rebate (PV)
The PV rebate will stay the same until the end of June 2021. This is great news for anyone who is considering installing a solar power system, because this rebate is currently set at $1850 and also includes the option of an interest free loan. These government PV rebates are limited, so it’s something that you need to seriously consider, but if it suits your needs, then it’s a great windfall!
The PV rebate and the interest free loans are designed to help homeowners with the costs of installation (the loan is equivalent to the rebate amount you receive). You must be eligible for this rebate first and the system must also be on the approved products list. Eligibility is based on the applicant being an owner occupier with a combined annual income of less than $180,000. The property must also be worth less than $3million and not have an existing PV system.
If you are eligible for the total $1850 rebate, then you can receive an interest free loan for the same amount, which means any systems costing less than $3700 won’t require you to pay any initial upfront costs (just the monthly payments on your interest free loan)!
What about commercial properties?
For much larger systems (greater than 100kW) commercial properties receive large-scale generation certificates (LGCs). These certificates are much the same as STCs, except they have a greater value. Businesses can also take advantage of the government’s economic stimulus package that provides two tax incentives for businesses. These include the instant asset write off and the accelerated depreciations deductions.
For professional installation of residential or commercial solar systems, call us on 1300 374 357.