Why Electricity Retailers Have To Subsidise Your New Solar System
(Because the government forces them to!)
If you buy a solar system today, it is subsidised by a federal government-run ‘financial incentive’ (aka a ‘rebate’!) that acts like a discount off of the total cost of a solar system.
Even though this ‘financial incentive’ is run by the federal government, it does not come out of the government’s coffers – the cost is borne by electricity retailers, who have a legal obligation to finance this scheme by purchasing ‘small scale technology certificates’ that are created based on the size of a solar PV system.
This financial incentive increases with the size of solar system you buy – a larger system attracts a much bigger incentive than a smaller one.
Once you’ve claimed your federal government incentives, you are then paid by your state government for feeding excess solar electricity back into the grid. Not too shabby!
There are currently over 1.5 million properties in Australia that have already taken advantage of this solar financial incentive, with more choosing to go solar every day.
You may well remember the furore last year when the Renewable Energy Target (RET) was almost scrapped by the Abbott government. In fact, it was saved by only 1 vote in the senate.
If the RET had been scrapped the solar rebate would have gone with it, and solar would have increased in price by about 40%.
The current legislation means that the solar rebate will start to reduce by one fifteenth every year from Jan 2017 until it drops to zero in 2032.
However, this could all change very quickly depending on the outcome of the double dissolution election we are about to have.
If the Turnbull government win both upper and lower houses – then I believe it is highly likely that they will introduce legislation to kill the RET and wipe out any solar rebate.
Just to be clear – no one knows what the outcome of the election will be or what legislation a new government will pass. But you may want to consider getting a solar system sooner rather than later if you belive a newly elected Liberal goverment would try and kill the RET if they had the opportunity.
If you’re looking to get quotes for solar from installers within our trusted network, that are looking out for your needs (and not just their own wallet) then simply click here to start the process
Benefits of Solar
There are numerous benefits to installing solar panels on your roof, including both federal and state-level subsidies, as well as large savings on your energy bills. Here are the top 5:
1) Save around $2,100 off of the cost of a smaller-sized (3kW) solar system. The larger your system size, the more you save off the final price!
2) When you use the electricity that your panels are generating (instead of feeding it back into the grid), it’s 100% free electricity.
3) Take control of your living expenses. Avoid being a victim of year-over-year increases in electricity costs.
4) Reduce your reliance on dirty coal-fired power plants by generating your own clean electricity.
5) Add value to your home – Real estate agents now see solar panels as a revenue generating asset.
How to get started
Solar panels are quick and easy to install, but first you need to find the right installer. There are thousands of solar panel installers in Australia.
It is very important that they are Clean Energy Council (CEC) accredited in order for you to be eligible for the federal government solar incentives. SolarQuotes provides you with 3 free, no-obligation quotes from local CEC accredited installers within our trusted network.
SolarQuotes operates on a very simple philosophy – if we wouldn’t recommend a solar installer to our grandmothers, we won’t recommend them to you. This means we only keep installers in our network who are CEC-accredited and use quality solar equipment.
We’ve been operating since 2009 and are Australia’s #1 Solar Panel Comparison site, with over 250,000 homes across Australia trusting us to organise their no-obligation solar quotes.
By comparing quotes from Australia’s leading CEC accredited solar installers in your area, you will be able to make sure that you qualify for these government incentives. Our installers will also conduct a full electricity bill analysis to ensure that solar makes sense for your household before you make a decision to buy.
How can I get quotes for solar and claim the solar rebate?
Step 1: Select your state on the map below (or click the red button below the map) and fill out our short form
Step 2: Our installers will contact you and give you a free, no-obligation quote for a solar system (which will include the rebate)
