Solar incentives
Solar Incentives - What you could get back
One of the benefits of solar power is what you could receive for installing a solar power system and generating solar electricity. You could receive: Small-scale...
One of the benefits of solar power is what you could receive for installing a solar power system and generating solar electricity. You could receive:
- Small-scale Renewable Energy Scheme (STCs) – which can be used to help reduce upfront costs.
- Feed-in Tariffs – used to calculate your potential earnings from electricity you feed into the grid.
Small-scale Renewable Energy Scheme (STCs).
The background.
The Small-scale Renewable Energy Scheme (STCs) scheme is a government initiative which aims to encourage an increase in the amount of electricity generated from renewable sources. When you purchase an eligible solar power, solar hot water or wind power system, you receive a number of STCs depending on your system’s size and your location.
What it means for your rebate?
Here’s an example of how STCs could work for a solar power system owner in Melbourne (Zone 4)2:
- Installing a 1.5 kW solar power system means you could be eligible for 26.6 STCs2.
- So you could be eligible for – 26.6 STCs X <$STC Value> = <$Rebate Amount>
- The value of the STCs can be applied to the value of the system you’re purchasing, reducing your upfront costs.
And here’s an example of how STCs could work for a solar power system owner in Sydney, Adelaide or Brisbane (Zone 3):
- Installing a 1.5 kW solar power system means you could be eligible for 31 STCs2.
- So you could be eligible for – 31 STCs X <$STCValue> = <$Rebate Amount>
- The value of the STCs can be applied to the value of the system you’re purchasing, reducing your upfront costs.
To find out what STCs are currently worth – visit the AGL Solar STCs page.
For general STCs information – visit the Office of the Renewable Energy Regulator website.
1 The STC multiplier (Solar Credit Scheme) is applies to the first 1.5kW of installed capacity, and is designed to discount the initial outlay. Anything over this threshold has the standard volume of RECs assigned.
2 Calculated at January 2013. STCs value and number are not set by AGL and are subject to change.
Feed-in tariffs.
The background.
A feed-in tariff is the amount paid to you per kWh for the electricity your solar power system feeds into the electricity grid.
What it means for your rebate.
A feed-in tariff, and how you are paid for the electricity you generate, differs depending on:
- which energy retailer you’re with
- the state in which your property is located.
Depending on your property’s location, you will either be paid by a gross metering system, or a net metering system:
- Gross metering – is where all the solar electricity your system generates is fed into the grid, and you’re paid a feed-in tariff for every kWh of solar electricity you generate.
- Net metering – is where the difference between the solar electricity generated and what you’ve used (the excess solar electricity) is fed into the grid, and you’re paid a feed-in tariff for every excess kWh generated and fed into the grid.
Discover what you could earn in your state at our solar feed-in tariffs page here.