The start of the new year brings changes to Australia’s hugely popular solar rebate – but solar power system buyers may not see any significant impact.
While there were some dodgy advertisers alluding to the subsidy ending on December 31 last year, this isn’t the case. The situation may still have some people confused, so here’s a summary of what’s happening in 2020.
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.
The number of certificates a system is eligible for is based on three factors:
- Solar panel capacity
- Location of 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 SolarQuotes’ STC calculator; 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 (although the ACCC and some other parties would like to see it end much sooner).
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.
Solar Subsidy Still Generous In 2020
If you weren’t able to install solar in 2019, there’s no need to feel as though you’ve missed out in a big way. For example, in 2020 the subsidy on a 6.6kW solar system installed in Adelaide is worth around $3,700 at current STC values; making early 2020 a great time to install solar panels.
The important thing is to not rush a decision – do your research and check out reviews of solar installers before signing on the dotted line. However, also bear in mind the longer you put off installing solar panels, the longer you’re locking yourself into higher electricity bills – and don’t forget STC value can fluctuate with market conditions.
By the way, for readers in Victoria, you’ll still get to double-dip in 2020 and benefit from both the national subsidy and Victoria’s solar panel rebate. You can learn more about what’s happening with the Victorian solar subsidy in 2020 here.
If you’d like a more complete explanation on the points mentioned above, SQ’s Ronald goes into greater detail here; it’s well worth a read.
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Hi Finn, Can you please give me some feed back on poly or mono panels and also so far inverters please. Kind regards Robyn.
Hi Robyn, Ronald here.
I’d say you don’t really need to worry about the difference between poly and mono solar panels. Mono panels tend to be a bit more expensive and a bit more efficient, but otherwise they are basically the same. If you want have a limited amount of roof space you can pay for high efficiency mono panels to get the most out of a limited number of panels, or if you have plenty of roof space you can use lower efficiency and lower cost poly panels.
Generally speaking, the higher the cost of the inverter the more reliable it will be. If you want peace of mind you can pay for a high quality one such as a Fronius or, if you are on a budget, you can get a lower cost inverter and cross your fingers that it will last a long time. Our solar 101 guide contains a graphic of inverters we regard as reliable:
https://www.solarquotes.com.au/solar101.html
Hi Ronald, thank you for your reply I do have a small pitched roof going to flat what sort of racking for flat roof also using seraphim 315 mono panels,with fronius int inverter. Regards Robyn.
If possible, all the panels should be mounted on the pitched part of the roof. If they are mounted on a slope that is less than 10 degrees, or worse, flat, dirt will tend to accumulate on them. Tilt racks can be used on flat roof sections to give them a tilt of at least 10 degrees, but these will add to the cost of the installation.
Hi Michael
just wondering – given the subsidies for solar power, how have they affected the price of solar panels… and the uptake rate?
Quick question – what if you want a solar system but also want nothing to do with the government? There’s nothing wrong with installing a system and NOT claiming any credits or feed-in tariffs right? I mean, just to avoid their BS, that’s all.
There’s no problem with that at all. You can have a solar system installed that doesn’t create the STCs (Small-scale Technology Certificates) that normally lower the cost of solar for households and there are no government feed-in tariffs available for new solar now, although if you don’t want a feed-in tariff at all that’s also easy to do. But it’s not at all difficult to get either of them, so you’re not really saving yourself any significant amount of bullshit by going without.
Hi, I’m looking at getting installed a 6.6kw system with 5kw inverter. Based in Qld, what rebates are available? I’m
Not looking at finance or interest free loans.
Are there rebates off the upfront cost?
Hi Anthony
You will be able to get the Small-scale Renewable Energy Subsidy or SRES. This is commonly called the solar rebate and reduces the upfront cost of the solar system. It’s available throughout Australia. Any quotes you get will include it in the price and your installer will handle it for you. There is basically nothing you need to do to get it. You just have to be happy with the quote that is prepared for you and accept it.
You will also get a solar feed-in tariff for surplus solar electricity you home doesn’t use and sends into the grid. The amount will be determined by the retail electricity plan you choose, so it pays to shop around for the plan that best suits you. If you live in the Ergon area the amount will be fixed and currently is 7.8 cents per kilowatt-hour.
Good luck getting solar and if you want to get quote through us go to our homepage:
https://www.solarquotes.com.au/
And enter your postcode in the space at the top right and answer the questions that come up as best you can.
When this offer will end …Please let me know as soon as possible
The “solar rebate” as it is often called, is being gradually phased out and 2030 is the final year it will be available:
https://www.solarquotes.com.au/blog/solar-panel-rebate-phased-1st-january-2017/
The current amount won’t be reduced until the end of the year, so you don’t need to rush when it comes to deciding what type of solar system you want and finding an installer who does good quality work.