Government Solar Incentives
The Government encourages people to use solar energy by offering incentives to Australian home and business owners. Read on to find out more about these incentives. Or contact our solar experts today on (08) 9303 9810.
Small-scale Technology Certificates – Your Solar Incentive
Home and business owners can take advantage of Solar Incentives in the form of Small-scale Technology Certificates or STCs. Put simply; STCs are an electronic form of currency supported by the Renewable Energy (Electricity) Act 2000. STCs can be used in 2 ways:
- Upfront discount– STCs are assigned to a registered solar agent when your PV system is purchased. The STCs reduce the cost of your system.
- Selling on the REC – The REC is the Renewable Energy Certificate Registry. This is where people buy, sell and transfer STCs. To do this, people must create the STC first.
Most consumers choose to use STCs to reduce the upfront costs of installation. The value of STCs is based on the supply and demand, they have been as low as $18 and as high as $40.
Extra electricity generated by your solar PV system can be reimbursed to you via a feed-in tariff. As of 2012, Perth’s feed-in tariff was 7.13 cents per kilowatt that is fed back into the grid.
Businesses can take advantage of Government grants designed to support solar energy system set up. Just some grants include:
In the 2017 to 2018 financial year, businesses can write off assets – including solar power systems – to the value of $20, 000.
This tax reform applies to business with a turnover of less than $10 million per year.