The ins and outs of solar panel rebates

Are you considering making the switch to solar energy for your home? Now is the perfect time to take advantage of the generous government rebates offered by Solar Victoria and the Federal Government. In this blog post, we'll explore the rebates available for residential solar panels, how to determine if you qualify, and other renewable energy incentives offered. Please note there are currently two types of Rebates available in Victoria. The STC rebate which is determined on the system size and the Solar Vic grant which is means tested.

Solar panel government rebates and loans offered solely in Victoria are provided through Solar Victoria, which was set up by the Department of Energy and Climate Action, to manage the state's Solar Homes Program.

The Small-scale Technology Certificate (STC) rebate is a financial incentive available Australia wide to encourage the installation of renewable energy systems, including solar panels, solar water heaters, and heat pumps. It's part of the Australian Government's Renewable Energy Target (RET)

Some parts of the process can be complex. But not to worry, Winki will be with you every step of the way. We'll tell you which solar rebates and loans you are eligible for, and even handle the application process for you.

Solar Victoria grants available

Solar Victoria offers significant rebates to eligible homeowners looking to install solar panel systems. These rebates help reduce the upfront cost of installing solar panels, making renewable energy more accessible and affordable for households across Victoria.

The current government rebate available for residential solar panels is up to $1,400 per household. Most households will get the full $1,400.

An interest-free loan of up to $1,400 is also available. This loan must be repaid in less than 4 years.

All told, this equates to a reduction of $2,800 on the install cost of your solar system.
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How to find out If I qualify?

To be eligible, you must meet the following criteria:

1. You must be the owner-occupier of the property where the solar panels will be installed.
2. Your household's combined annual income must be less than $210,000.
3. Your property's value must be less than $3 million.
4. The property has not previously received a rebate under the Solar Homes Program.
5. The property has not had solar panels installed on it within the last 10 years.

Don't miss out on a rebate - they are limited

There is a limited number of rebates that Solar Victoria is allowed to provide. Once they run out, you'll have to wait for more to be made available, and that is not guaranteed to happen.

This page on Solar Victoria's website shows how many more solar rebates are available to be claimed in the current round.

Can rental properties get the rebate?

Yes. Rental properties are also eligible for the $1,400 rebate.

How do I apply for the solar rebate?

You'll need to engage an accredited solar retailer, like Winki, who will guide you through the application process. They will ensure that your solar panel system meets all the necessary requirements and assist you in submitting your application to Solar Victoria.

Other incentives available from Solar Victoria

In addition to the rebate for residential solar panels, Solar Victoria offers a range of other incentives for renewable energy upgrades. These include:

1. Solar battery rebate: Homeowners can receive an interest-free loan of up to $8,800 for the installation of a solar battery storage system.
2. Hot water heat pump rebate: Eligible households can receive a rebate of up to $1,000 for the installation of a solar hot water heat pump system. Read our posts on How much do hot water heat pumps cost? and All about hot water heat pumps to learn more.

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Federal STC Rebates available

The Small-scale Technology Certificate (STC) program is part of the Australian Government's Renewable Energy Target (RET). It's designed to encourage the adoption of renewable energy systems, including solar photovoltaic (PV) systems, by providing a financial incentive for homeowners, small businesses, and community groups.

STCs are essentially a form of currency that represents the amount of electricity a solar system is expected to produce over its lifetime (up to 2030, when the scheme is currently set to end). The number of STCs a system can create is based on its expected power generation, which is influenced by the system's size and the location's solar irradiance levels.

How the STC rebate works for an average-sized solar system of 6.6kW:

1. Calculation of STCs: The number of STCs a solar system can generate is calculated based on the expected production of the system over a set period (deeming period) up to the end of 2030. This calculation takes into account the geographic location of the installation, as different regions receive varying levels of sunlight, affecting the system's electricity generation capacity.

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2. STC Value: The value of an STC fluctuates based on supply and demand in the open market. Solar system owners can sell their STCs to recoup a portion of their installation costs. The selling price can vary, but the process is often facilitated by solar retailers or installers who offer an upfront discount on the installation cost in exchange for the STCs.

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3. Average STC Amount for a 6.6kW System: The exact number of STCs a 6.6kW system can generate will depend on its location and the current deeming period. As a rough estimate, a 6.6kW system might generate around 91 to 100 STCs over the deeming period, depending on its location. With STC prices varying (let's use an example rate of $35 per STC, though this rate can fluctuate), the total rebate could range from approximately $3,185 to $3,500. This amount is  deducted from the upfront cost of the solar system by Winki.

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Conclusion

With Solar Victoria's generous rebates and incentives, transitioning to renewable energy has never been more accessible or affordable for Victorian homeowners. Whether you're considering installing solar panels, a solar battery storage system, or a solar hot water system, now is the time to take advantage of these valuable incentives. Contact Winki today to find out how you can start saving money and reducing your carbon footprint.

Once you have read this blog post, we have anther you might be interested in: How much does solar cost?