Australia, being blessed with sunshine, is the best place for solar energy. With rising energy costs and a collective push toward carbon neutrality, homeowners are turning to solar to save money and reduce their carbon footprint. Government programs provide the financial support you need to make solar accessible and affordable.
Federal Solar Incentives
- Small-scale Renewable Energy Scheme (SRES)
The other major source of support for dropping installation costs is the federal government’s Small-scale Renewable Energy Scheme (SRES). This scheme allows homes and businesses to earn Small-scale Technology Certificates (STCs).
How STCs work:
STCs are essentially tradable certificates rewarded based on your solar system’s projected energy production. Solar retailers often apply the value of these certificates upfront as a discount on the total installation cost.
The number of certificates you earn depends on factors like your location, system size, and installation date. However, keep in mind that the value of STCs reduces annually as we move closer to the 2030 sunset deadline for the scheme.
- Instant Asset Write-Off (IAWO) for Businesses
Small businesses, with a yearly turnover of less than $50 million, can utilize Instant Asset Write-Off and expense the entire cost of a solar power system in the year of installation (subject to eligibility). This incentive not only makes setup more affordable but also delivers near-instant tax relief.
State and Territory Solar Incentives
- Australian Capital Territory (ACT)
- Sustainable Household Scheme: This scheme provides interest-free loans between $2,000 and $15,000 for the installation of solar panels and energy storage batteries.
- Victoria (VIC)
- Solar Panel Rebate: Eligible homeowners can claim up to $1,400 off the cost of installing solar panels via Solar Victoria.
- Interest-Free Loans: On top of the rebate, interest-free loans equivalent to the rebate amount are also available.
- Solar Battery Loan: Receive loans of up to $8,800 for approved solar battery storage installations.
- Victorian Energy Upgrades (VEU) Program: Offers rebates for energy-efficient products, helping reduce bills and emissions.
- New South Wales (NSW)
- Residential Battery Incentive (starting November 2024): Provides rebates for installing a battery storage system. The discount amount is based on the usable capacity of the battery in kilowatt-hours (kWh), meaning larger batteries will receive larger discounts.
- An incentive of $250 to $400 is available for connecting your solar batteries to a Virtual Power Plant. This incentive can be claimed twice, with at least three years between claims.
- South Australia (SA)
- The City of Adelaide Sustainability Incentive Scheme supports renewable energy adoption with grants for solar and energy-efficient upgrades, helping reduce emissions and utility bills.
- Queensland (QLD)
The state’s main incentive revolves around STCs, which significantly reduce the cost of installing eligible solar systems.
- Tasmania (TAS)
Tasmania offers no state subsidies for solar panel installations. The only available rebate is the government’s STC rebate.
- Northern Territory (NT)
- Home and Business Battery Scheme: As of 1 December 2024, eligible homeowners and businesses can access a grant of $400 per kilowatt hour of useable battery system capacity, up to a maximum grant of $12,000.
Other Benefits of Going Solar
While rebates and incentives provide upfront cost savings, investing in solar yields long-term financial and environmental rewards, including:
- Lower Electricity Bills – Generate your own clean energy and drastically reduce your reliance on the grid.
- Higher Property Value – Homes with solar installations are more appealing to buyers.
- Energy Independence – Take control of your power usage with renewable energy.
- Environmental Impact – Make a meaningful contribution toward reducing carbon emissions.
Tips to Maximize Your Solar Savings
- Choose the Right System
Select a system suited to your energy consumption. Larger systems may generate more energy but could result in higher upfront costs.
- Consider a Solar Battery
Adding energy storage to your system allows you to store excess solar energy generated during the day for use at night. Programs like the Victorian Solar Battery Loan make it easier to invest in this technology.
- Stay Updated on Incentives
Solar incentive programs can change over time, so it’s essential to regularly check government websites or consult industry professionals for the latest information.
- Hire a Reputable Installer
Partner with an CEC accredited solar retailer or installer to ensure quality workmanship and system performance.
How to Start Your Solar Journey
Navigating the solar landscape with its multiple rebates, schemes, and technological options can feel overwhelming. Begin by contacting our independent solar consultants via our website www.independentsolarconsultants.com.au to help you compare quotes to secure the best deal.