Incentives and Feed In Tariffs Reduce the Cost of Solar
As solar water heaters and solar power are so good for the environment, governments at Federal and State levels offer incentives to help you make the switch. While feed in tariffs offered by energy providers ensure any excess solar power you produce is not wasted.
Government Incentives Help You Save on Solar Hot Water and Solar Power
Small-scale Technology Certificates (STCs)
The Federal Government offer incentives under the Renewable Energy (Electricity) Scheme to households that install solar hot water and solar power systems. These incentives come in the form of Small-scale Technology Certificates (STCs).
For a solar hot water system each STC represents 1 megawatt hour (MWh) of electricity displaced over a 10 year period.
For a solar power system each STC represents 1 megawatt hour (MWh) of renewable electricity produced over 15 years.
Therefore the number of STCs produced depends on the size of the system and your location. Australia is divided up into various zones based on how much solar energy is available for a solar water heater or solar power system in a given area. So the same sized system installed in Melbourne (Zone 4) has a lower rating and receives fewer STCs than those installed in Darwin (Zone 1) because Melbourne has less sunshine so less solar energy is available.
Once you install a solar water heater or solar power system the STCs produced can be traded and sold on the open market. You can assign the right to create your STCs to your Solahart Expert who will pay you the value of the STCs as an upfront discount on your system.
To find out how much you could receive check out our incentives calculator.
Further information on STCs can be found here.
To download an STC Form please use this link – SHW STC Assignment Form
Sell Your Excess Power Back to Your Energy Provider
Feed In Tariffs
Some state governments and electricity providers offer preferential feed in tariffs, to provide a further financial incentive to switch to solar power.
The most common system offered today is called a net feed in tariff. With a net feed in system you use the electricity you generate and any excess is sold back to your electricity provider. Electricity can still be purchased at night, when you are not generating it. The saving is represented as a credit on your electricity bill.
Current NSW State Feed In Tariff
Energy retail offer: 6c-8c/kWh
Tarriff type: Net
Conditions: Contact local energy retailer
Note: This information was current at the time of publishing but information and state policies are subject to change. Your local Solahart Expert will be able to advise you about the tariffs in your area.