Australian Solar Subsidy Reduction Just A Few Weeks Away

Australian solar subsidy reduction

The year has flown by – and current solar subsidy levels will fly out the window soon for Australians who put off ordering a solar power system.

Qualifying solar power systems in Australia are accompanied by small-scale technology certificates (STCs – formerly known as RECs), which have significant monetary value. Eligibility includes the system meeting relevant Australian standards and it being acquired from/installed by a Clean Energy Council accredited designer and installer.

By assigning these STC’s to the solar provider, a point-of-sale discount is provided that substantially reduces the up front cost and avoids headaches for the customer in terms of having to deal with the certificates.

The savings from this subsidy can run into many thousands of dollars and without it, Australia would  not have reached 1.6 million installed solar power systems so quickly.

Solar power system subsidy

The number of STC’s accompanying a system is determined by a various factors, including the amount of electricity it will generate over what is known as the “deeming period”; which is currently 15 years.

But come January 1, the deeming period will be reduced to 14 years and consequently reduce the level of subsidy – we explain this in greater detail here. The deeming period will continue to reduce in the years ahead.

The tricky bit is the STC’s need to be claimed by the installer/provider – or the customer if they choose not to opt for the point of sale discount – after installation. This means some solar providers will probably start factoring in the reduction very soon; if not already as installations may occur after December 31.

To assist more Australians in taking advantage of current subsidy levels, solar provider Energy Matters will lock in the current subsidy rate for customers placing a solar panel system order by midday, December 3. These customers will also receive an extra $150 cash back; in the form of an EFTPOS card issued after installation.

This translates to up to a $400 saving on a 5.2kW solar power system compared with ordering after December 3.

To take advantage of this offer, the code “STC LOCKED” should be mentioned when speaking with an Energy Matters consultant.

To order a solar power system or gain obligation-free advice, Energy Matters’ solar experts can be contacted on 133 SUN. Energy Matters is also open this and next Saturday morning to assist with ordering and system selection.

Image Credits: BigStock