Solar Trust Centre | Solar and Renewable Energy News

Australian Solar Subsidy Reduction is Just a Few Weeks Away

Written by Solar Trust Centre Team | Nov 28, 2016 1:37:20 PM

The year will go by and the present solar subsidy levels will fly out the window for Australians who put off ordering a solar power system according to Energy Matters.

Qualifying solar power systems in Australia are accompanied by small-scale technology certificates which have significant monetary value. Eligibility includes the system meeting relevant Australian standards and it being acquired from/installed by the 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 upfront and avoids the 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. The number of STC’s accompanying a system is determined by different factors, including the amount of electricity it will generate over what is known as the deeming period which is 15 years.

By January 1, 2017, the deeming period will be reduced to 14 year, consequently reducing the level of subsidy. The deeming period will continue to go down in the years ahead.

The tricky bits are 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 the 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 provides Energy Matters will lock in the current subsidy rate for customers placing a solar panel system to order by December 3. These customers will also receive an extra $150 cash back in the form of an EFTPOS card that is issued after installations.

Click here to read the story on Energy matters

Featured Image Credit: Ken Bosma