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Space Solar Rebate Guide – 2023 Edition
Every year, the cost of getting solar installed increases due to the reduced rebate. So what is the rebate? Am I eligible for it? Who gets to keep the rebate? How much is it worth, and why does it get reduced? Let’s explore these common questions below.
What is “the rebate”?
Every solar system that is installed in Australia generates STCs (or small-scale technology certificates), which are the government’s way of subsidising the up-front cost of getting solar installed. Basically, the government will pay for some of your solar installation and give it to the solar company that does the installation. This way, you are spending less up-front, and there is an incentive to get it installed.
Am I eligible for it?
Every solar installation in Australia is eligible for the rebate and will generate STCs for the solar company. As long as the installation is carried out by a CEC-accredited installer and meets the relevant Australian standards, your system will be eligible for STCs. Even if you already have an existing solar system on your home and you want to add a second or even a third system, ALL freshly installed systems are eligible for the rebate as long as they are installed by a CEC-accredited installer.
Who gets to keep the rebate?
When you get a quote for your solar system, you will likely see an indication of how much your rebate or STCs are worth. For example, it might say your quote is $4,000 with $2,000 in STCs. Instead of you paying $6,000 and then eventually getting a refund of $2,000 from the government, the solar company will only charge you $4,000 and then claim the rebate on your behalf. This is the way the Australian Government has set it up, as it means the homeowner (customer) is never out of pocket more than they need to be, and it reduces the up-front cost, making it a lot easier to get a system installed.
Why does it get reduced?
The amount of STCs and their value will change over time, very similar to the stock market. This rebate has been in Australia for over 10 years now and has helped millions of homeowners get a solar system installed for a much cheaper price. The only problem is that the STC scheme will not last forever, and every January, the amount of STCs your system will generate will be reduced. This means that the cost of solar gradually increases every year as there is less rebate value.
How much is the rebate worth right now?
Note: Example figures
A 9.9 KW system in NSW installed in the year 2022 will generate 123 STCs. The value per STC fluctuates a lot, but most agree that a good value is around $35 each. This means the value of the rebate is 123 STC multiplied by $35, or $4,305.
For the exact same system purchased in the year 2023, it will generate 109 STCs. This means the value of the rebate is 109 STC multiplied by $35, or $3,815
This is a reduction of around $500 for the exact same system, just installed in 2022 instead of 2023.
Depending on your roof size, electricity bill size, and many other varying factors, you may be able to take advantage of the rebate to pay for a lot of the up-front cost of getting solar installed. It depends on many different factors, which is where Space Solar can help.
Our advice? Speak to Space Solar to get the facts.
The cost of solar has been increasing for many varying reasons over the last few years, and the yearly reduction in the rebate is just another reason why people are getting solar installed ASAP to avoid paying more for the same thing. With the rising cost of electricity guaranteed over the next few years, the demand for solar will continue to go up as more and more people see the value in investing in solar.
Getting a solar system installed today (or this year) is the only guaranteed way to get the cheapest price possible. The only guarantee we can make is that the price of solar will continue to increase as time goes on, and investing now is the quickest way to get your money back through savings.
Speak to one of our friendly team members to discuss your options and how to get the most out of the rebate incentive.
