Guide to Federal Solar Rebate in Australia [2024 Update]

What Is Federal Solar Rebate?

Because the high upfront cost of solar energy can be prohibitive for many people who want to install solar energy systems, the Australian government is encouraging homes and businesses to install solar energy systems to reduce greenhouse gas emissions.

One of the critical components of the federal government's solar rebate program is to provide subsidies to eligible homes and businesses. Solar Rebate is a financial program established by the Australian government to encourage more people to generate their electricity using solar energy systems and invest in renewable energy.

For most people, installing a solar power system is because the initial cost of solar power is high. So early on, the Australian government launched the federal solar rebates program to encourage homes and businesses to buy and use solar energy.

Federal solar rebates will help expand solar capacity on Australia's electricity grid by assisting Australians in better reducing the upfront costs of solar energy systems by allowing homeowners to install solar energy systems. Federal solar rebate incentives make it more affordable for Australians, businesses and communities. Ultimately, solar power will become the energy choice for many Australians.

Federal Solar Rebates in Australia

The Federal government has introduced many programs to promote the use of new energy, especially solar power. The cost of living is rising for many Australians. Although the amount and type of solar incentives have decreased, there are still incentives available to households and businesses looking to install solar.

A. The Small-Scale Renewable Energy Scheme

The SRES is the Australian government's main incentive to call on installing and using renewable energy solutions, including installing solar panels. Under the SRES, customers who install qualifying small-scale renewable energy systems (e.g., solar panel systems of less than 100 kW) can receive a Small Technology Certificate (STC) grant.

If you install or upgrade a rooftop solar system, a certain number of STCs will be issued upfront based on the system's expected electricity generation (based on installation date and geographic area) until the SRES expires in 2030.

According to the Clean Energy Regulator, one certificate equals one megawatt-hour of renewable electricity. Typically, these certificates are sold by solar installers on behalf of customers to recover part of the total installation cost. In other words, the STC is also a "currency" that can be sold or exchanged and used to pay a portion of the initial cost of installing a solar system.

Customers can also sell these certificates through the open market or the so-called "STC Clearing House". In addition, you can also redeem these certificates by submitting them to third-party retailers or solar installers. The total amount you receive depends on the prevailing market price of STCs. However, this amount usually fluctuates between $35 and $40.

Criteria to qualify for an STC under the SRES：

• The capacity of the installed solar system must not exceed 100 kW.
• Solar energy systems must be installed by an installer approved by the Australian Solar Certification Association and the Clean Energy Commission (CEC).
• The solar panels and inverters you choose must be on the Clean Energy Council's approved modules and inverters list.
• The solar power system must be installed in a suitable location. (i.e. connect to the network)

Four factors that influence the number of STCs you receive：

Australia exhibits spatial variability in its solar energy potential. To accommodate this, the country is partitioned into distinct solar zones, each assigned a specific rating that represents the average solar irradiance, or amount of sunlight, received in that area. The zone ratings have a crucial impact on calculating the STCs you can receive for your solar system.

The image below shows that Australia is divided into four regions based on solar radiation.

(Image Source: Clean Energy Regulator)

Here are some examples of approximate STC values for a 6.6kW solar system in different solar radiation zones (STC price based on $36):

Zone 1: Incentive = $2,664

Zone 2: Incentive = $2,520

Zone 3: Incentive = $2,268

Zone 4: Incentive = $1,944

(Data Source: Solar Quotes)

B. The Large-Scale Renewable Energy Target

The Large-scale Renewable Energy Target (LRET) is part of the government's renewable energy target and aims to generate large-scale renewable energy through power stations. The program is designed to promote the use of renewable energy by encouraging companies to adopt solar energy.

Companies using solar instead of conventional energy can issue a Large Scale Generation Certificate (LGC). Under the Large-scale Renewable Energy Target, large-scale generation certificates (LGCs) are a financial incentive for power stations to produce renewable energy. 1 LGC equals one megawatt-hour (MWh) of renewable energy produced or replaced by a power plant.

A responsible entity must supply several LGCs to fulfil its obligations under renewable energy targets. It creates a market for LGCs so that renewable energy power stations can sell their certificates to electricity retailers and other responsible entities.

C. Solar Feed-in Tariffs

Feed-in Tariffs (FiT) are subsidies given to you by your electricity supplier for the rest of the day's electricity you produce and export to the grid. Feed-in tariffs are usually paid at a fixed rate per kWh, which is paid to finance electricity bills.

As the feed rate is a matter of government policy, the rate varies depending on the region of residence. Some states have a minimum FiT set by the government, while others do not. For example, New South Wales and South East Queensland do not have state-mandated minimum FiT rates. Even though some states have a minimum FiT set, electricity suppliers can set their rates based on the minimum FiT set.

The table below lists the lowest and highest Solar Feed-in Tariffs for VIC, NSW, QLD and SA.

For more accurate and comprehensive data on Feed-in Tariffs, please visit constarblue.

D. Local government Schemes

Various governments, territories, and local government areas offer subsidy schemes to assist with the initial expenses of installing solar panels and batteries. These are supplementary to STCs.

Depending on your geographical location, you may be eligible for:

• A rebate is a form of financial assistance in which you are given a payment or subsidy to help cover the expenses of purchasing a solar system or batteries.
• A loan is a financial arrangement in which you borrow money to cover the expenses of purchasing a solar system or battery. This loan is offered at advantageous interest rates.
• A rebate swap refers to exchanging bill refunds for a solar subsidy.

The available support will differ based on the jurisdiction where the rooftop solar system is being built, whether for residential or commercial use and the specific criteria of each programme. The different schemes may undergo modifications throughout time. Learn more about various schemes and rebates from the Energy government website.

How Do I Apply for The Federal Solar Rebates? 

Applying for federal solar rebates in Australia requires several steps.

A. How To Apply For STC?

There are two ways to apply for solar rebates: using on your own or having your solar installer help you apply for them. Both methods have their advantages and disadvantages.

On the one hand, leaving the application for solar rebates to your installer is often a more straightforward option that facilitates the process and reduces the system's initial cost. On the other hand, applying on your own gives you more control, but it takes time and effort to navigate the regulatory environment.

Applying for an STC on Your Own

You can apply for the STC directly. This process includes completing application documents to prove your system and find a buyer for the STC. This method takes more time and requires a better understanding of the market and regulations, but it gives you control and saves you money on processing fees.

Applying for an STC on Your Behalf

One of the most convenient ways to apply for solar rebates is with the help of a solar installer. Installers usually provide you with an upfront discount on the cost of your solar system and take on the responsibility of creating, selling, and trading STCs, streamlining the entire process for you.

B. How To Apply For LGC?

A renewable energy power station (such as wind or solar) produces one LGC for every megawatt hour of renewable energy it produces.

Those LGCs can be sold or traded to entities that have to meet renewable energy obligations under the RET, such as electricity suppliers. Alternatively, LGC can be sold to private buyers through the secondary market.

C. How To Apply For Feed-in Tariff?

The FiT is applied after you connect to the grid, but you can also choose a higher electricity price by comparing the rates of various electricity suppliers. However, while some electricity plans have a higher FiT than others, your usual electricity bill could be higher, so make sure you compare carefully before choosing.

To apply for FiT, you must contact your electricity supplier. They provide new meters to measure the electricity delivered to the grid. You can find out the rules for the FiT in your state before contacting your electricity supplier, such as the FiT minimum price.

Check with your provider to see if you qualify for the program and if a discount is offered when discussing quotes.

Jackery Solar Generators Explained

When maximising solar savings, it's essential to consider the rebate and other factors that can increase efficiency and affordability. Beyond the refund, optimising your solar panel system's size and placement can enhance energy production and savings over time.

Jackery is a renowned manufacturer in the solar industry, focusing on producing top-notch solar equipment like solar generators, solar panels, and portable power stations. Jackery Solar Generators offer a reliable and uninterrupted power supply for your household appliances.  

Moreover, integrating energy storage solutions such as the Jackery Solar Generator 2000 Plus or 1000 Plus can complement your solar panel system by storing excess energy generated during the day during peak demand or at night. This ensures an uninterrupted power supply and enables greater self-sufficiency, ultimately enhancing your solar savings and reducing reliance on the grid.

Jackery Solar Generator 2000 Plus

Jackery has unveiled the Solar Generator 2000 Plus, a cutting-edge portable power solution with exceptional performance. Thanks to its substantial capacity and formidable power output, this device can sustain the operation of standard domestic appliances for several weeks and fulfil all the power needs associated with outdoor adventure or professional activity.

The Jackery Solar Generator 2000 Plus allows adding extra battery packs, which boosts the capacity from 2 kWh to a remarkable 12 kWh, thus enhancing the solar charging capabilities significantly. With the ability to be expanded to 3000W, this solar product offers a 30% higher rated power than other 2 kWh solar goods available in the market.

The Explorer 2000 Plus is an industry's pioneering add-on battery pack that can be recharged using solar panels. This feature enhances versatility, improves charging efficiency, and reduces charging time. The LiFePO4 battery, with its sophisticated technology, guarantees a lifespan of 10 years, even with daily usage limited to once per day. Jackery Solar Panels generate more energy over their lifespan due to their exceptional solar conversion efficiency, reaching up to 25%.

• Massive Battery Capacity: With a whopping 2042.8Wh capacity, powered by LFP (LiFePO4 battery) cell chemistry, you can keep your devices running for more extended periods without worrying about running out of juice.
• High-Powered Outputs: Enjoy up to 3000W of continuous AC power, 100W of USB-C power, and Quick Charge 3.0 technology for rapid charging.
• Fast Charging: Say goodbye to long waits for recharging. With the included AC adapter, you can fully recharge the Explorer 2000 Plus in just 1.7 hours, ensuring minimal downtime between adventures.

Jackery Solar Generator 1000 Plus

The Jackery Solar Generator 1000 Plus is the best portable power supply due to its exceptional output. It can aid in home emergencies and other outdoor activities. It is the all-in-one solar generator for your life due to its versatility and size.

Supports up to three additional battery packs, bringing the total capacity to 5kWh and providing 1-3 days of home backup power. A solar generator can power your communication devices, medical equipment, household appliances, and outdoor electronics, bringing comfort and convenience. 

The Jackery Explorer 1000 Plus portable power station, with a 10-year lifespan and a Lithium Iron Phosphate (LiFePO4) battery, provides a consistent voltage and pure sine wave to ensure the safety of all your electrical gadgets. Additionally, the innovative ChargeShield technology and consistent power delivery avoid equipment damage.

• ChargeShield Technology: The innovative ChargeShield technology and consistent power delivery avoid equipment damage.
• Ultra-Fast Solar Charging: Advanced IBC Technology, Fast Solar Charge in 4.5 Hours with Solar Panel 100W*4.
• Intelligent Control: With the advanced APP feature, via WiFi or Bluetooth.

Are Federal Solar Rebates Worth It?

Currently, most households and businesses in Australia can still benefit from solar rebate schemes. So, for most homeowners, installing solar panels is worth the effort because solar panel systems can produce clean electricity for 25 years or more.

Here are the reasons why federal solar rebates are worth it in Australia:

Reduce Upfront Costs: They are considering the significant financial investment required to install a solar panel system or energy storage device and the costs, no matter how big or small, to offset part of the upfront cost of the solar system.

Reduce Energy Bills: After installing a solar system, the system can generate free electricity for the home, helping homeowners save money.

Among them, the feed-in tariff system allows electricity generated from solar energy to be fed back into the power grid, where homeowners receive credit towards their electricity bills. However, the savings will depend on your circumstances, including your home's energy use.

Increase Property Value: Homes with installed solar systems will become more attractive to potential buyers. So, installing a solar system can increase the value of the property.

Environmental Impact: Using solar systems instead of traditional energy consumption can fight climate change.

Federal Solar Rebates FAQs

The following are the frequently asked questions about the federal solar rebates in Australia.

1. What are the things to pay attention to when choosing and using solar energy?

Research and compare government and electricity supplier incentives and rebates to make the most informed choice. Choose the solar system size based on energy needs, roof space and budget.

Choose high-quality, compliant solar system accessories to improve performance and minimise future maintenance costs. Choose CEC-approved installers for safe and compliant installation to reduce installation risks. Regular maintenance and care ensure optimal performance and life of the solar system.

2. How does the federal solar rebate work?

The Federal government has cleverly designed the Solar Rebate incentives so that the actual cost to the government is meagre. The Federal government's Solar Rebate works like this:

Step 1: The government creates virtual certificates called Renewable Energy Certificates (RECs).

Step 2: When you install a solar power system, the government gives you a certain number of RECs based on the size of your system, the amount of sunlight in your part of Australia, and the installation date.

Step 3: The type of REC you get for a residential solar system is a Small Scale Technology Certificate (STC). The kind of REC you get for a commercial solar system (such as a power plant) is a Large Scale Generation Certificate (LGC).

Step 4: You (or the installer) sell the STCs to a dirty fossil fuel generator. The money from the STCs is used to offset the upfront cost of buying the solar system.

3. What is the professional solar installation process like?

A professional solar system installation can take anywhere from one to three days, depending on the size of the system you are installing. The installer will find a suitable location on your roof to mount the solar panels and ensure the shingles or tiles are not hazardous.

The installer will install wires to connect your solar panels to the general electrical system. (The installer may need to enter your home to run the cables.) Once the wiring is complete, the solar panel brackets are installed on the roof. The final step is to connect an inverter to the panels to convert the DC power they generate into AC power to power your home appliances.

4. What is the federal rebate for solar in 2024?

Suppose you were to install solar panels on your residence in 2024, and the overall expense of this installation amounts to $35,000. Given that the solar tax credit rate in 2024 is at 30%, you would be eligible for a tax credit of $10,500.

5. What is the $7000 solar rebate in NSW?

Environment Australia and the NSW government established the Solar Rebate NSW programme to promote the adoption of renewable energy sources. The program allows homes to receive refunds of up to $ 7,000 or a loan to install a solar panel system.

Final Thoughts

With global concerns about climate change and the growing need for sustainable energy solutions, the Australian federal solar rebates and initiatives are an essential step to help Australia grow. Solar energy systems reduce the electricity grid's strain and bring economic benefits to Australian homeowners and businesses.

So, by understanding and following the information and advice in this guide, Australian homeowners and businesses can make intelligent decisions, harness the benefits of renewable energy and help create a greener future for Australia.