GOVERNMENT INCENTIVES

Both the State and Federal Government provide 2 forms of assistance when installing a solar system.

1. A rebate when you purchase the system, which comes off the price of the system.
2. The purchase of the power you don’t use during the day.

Assistance purchasing the system
When you install a solar system, you generate what are called Small Technology Certificates (STC’s) or what were formally called Renewable Energy Certificates (RECs). You will receive 1 STC for every Megawatt of energy your system is expected to produce over the next 15 years.

A 1.5 kW system (approx 8 panels) will produce around 31mW worth of electricity over a 15-year period so you are entitled to 31 STC’s, which currently trade for around $30 each. This means you receive $900 in assistance when you purchase a 1.5kW system.

The Federal Government has also introduced the STC multiplier, which entitles you to 3 times this amount of STC’s for your first 1.5kW worth of system up until July 1st 2012. After this date, the multiplier will reduce by 1 multiple each year until 2013 when it’s withdrawn.

This means that the government commits around $2700 for your first 1.5kW worth of system and then $600 for every kW after that.

Selling your excess power – Paid by your electricity retailer.
Your energy provider will buy back whatever energy you don’t use.

Synergy and Horizon currently pay 7c for every kW of energy you send back to the grid for a period of 10 years from when the system is installed.

This means that you will reduce your electricity bills, plus, depending on the size of the system you purchase and the amount of electricity you’re able to export, you may receive a credit on your bill.