Federal Incentives & Solar Rebates For Solar Power
The Large-Scale Renewable Energy Target (LRET)
The LRET is a government scheme that requires electricity retailers to source a certain percentage of their electricity from renewable sources.
The LRET was met in 2022-2023, with 33,070 GWh of renewable electricity generated. The LRET has now been replaced by the Clean Energy Target (CET).
The Clean Energy Target (CET)
The CET is a government scheme that requires electricity retailers to source a certain percentage of their electricity from renewable sources. The target is set annually. The first target under the CET was 35,000 GWh in 2023-2024. The target for 2024-2025 is 38,000 GWh.
The Small-Scale Renewable Energy Scheme (SRES)
The SRES is a government scheme that provides an incentive for the installation of small-scale renewable energy systems, such as solar panels.
The SRES is currently set at 350,000 small-scale technology certificates (STCs) per year. This is a decrease from the previous target of 400,000 STCs per year.
STCs are created for every megawatt hour (MWh) of electricity generated by a small-scale renewable energy system.
STCs can be sold to electricity retailers or on the open market. The current price of an STC is around $33.
The incentives provided under the RET and CET have helped to make solar power a more affordable option for households and businesses. As a result, the amount of solar power installed in Australia has increased significantly in recent years.
In addition to the RET and CET, there are a number of other government incentives available for solar power, such as state-based rebates and feed-in tariffs. These incentives can vary from state to state, so it is important to check with your local government to see what is available.
How Much Can I Save with the SRES Rebate?
The amount of money you can save with the SRES rebate depends on the size of your solar system and the current STC price. For example, a 6.6kW solar system in Sydney would generate approximately 9.1 MWh per year, which at the current STC price of $33 per STC would be worth $3176.
How Do I Calculate My SRES Rebate?
To calculate your SRES rebate, you can use the following formula:
STCs = (System size in kW) * (Expected output in MWh per year) * (Number of years until 2030)
For example, a 6.6kW solar system in Sydney would generate approximately 9.1 MWh per year, so the number of STCs would be:
STCs = (6.6 kW) * (9.1 MWh/year) * (8years) = 55.2 STCs
The current STC price is $33 per STC, so the total SRES rebate for a 6.6kW solar system in Sydney would be:
$33/STC * 55.2STCs =$1,922
What Are the Other Incentives for Small-Scale Solar?
In addition to the SRES rebate, there are a number of other incentives available for small-scale solar, such as:
* **State-based rebates:** Some states offer rebates or discounts on the cost of solar panels.
* **Feed-in tariffs:** Some states pay a premium for solar electricity that is exported to the grid.
* **Loans and financing:** There are a number of loans and financing options available for solar panels. It is important to check with your local government to see what incentives are available in your area.
