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Government Rebates

Feed in tariffs
Wherever you are in Australia you will usually be entitled to a credit for selling energy back to the grid. This occurs on the days when you are producing more solar energy than your house is using. For example, you may have a pool running and fridges using a total of 2kWh of electricity per hour through the daylight hours which is currently drawing from the grid. Under a ‘Net Metered’ feed in tariff scheme any solar system installed by Gem Energy Australia will take over running your appliances. If you have a 5kW system installed, in the middle of the day when it starts to perform at its best it will produce more than the 2kWh demand you have and the remaining excess solar generation will go back to the grid. You will receive a credit from the power company for that excess solar which is usually around 6c per kWh in all states apart from the NT where it is 1-1 so you sell a kWh for the same value as you currently buy it.

Solar Feed In Tariff

STCs or Cash Discount

Currently, the government are helping with the purchase of solar systems by offering an upfront cash rebate which is usually paid to the installer of the solar energy system. The rebate is made up of a number of certificates called STCs which are openly traded for a value that fluctuates from day to day. At the moment for a 5kW system you will receive 103 STCs which are currently traded at $36 each offering an upfront discount of $3,708. In the past the number of STCs available would have been in the region of 300 which being traded at $36 meant you would have received a rebate of $10,800. Over the years as the price of solar panels has fallen and so has the rebate. The value of these solar rebate seems to average covering around 20-30% of the total system cost.

Industry experts are suggesting that because the cost of solar panels has come down so much and 5kW systems can now be picked up anywhere from $7000 (very low quality equipment) they no longer need to offer the upfront discounts to stimulate the purchase of these solar panel systems. If people were happy to pay $15,000 for a 5kW 2 years ago why wouldn’t they be happy to pay $10,000 now with or without the rebate. This coupled with naturally increase costs of electricity offer incentive enough.

Other opinions suggest that an axe in this government rebate would provide the necessary funds to continue to finance the 8c and the 44c solar feed in tariff rebates.

Current Feed In Tariff Rebate Schemes.

Solar Feed In Tariff 2


If you would like more information on these rebates or would like to see how solar can save for you please fill in your details below and one of our friendly consultants will be in touch.

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