Solar Rebates To Be Phased Out From 2017

Solar Rebates To Be Phased Out From 2017

Recent news from the Clean Energy Regulator means that the STC solar rebates currently subsidising solar power systems will be phased out starting in just under 8 months! This means that people who don’t have solar by the end of 2016 will end up paying more for their system!

solar rebate phase out
The chart shows a projection of STC rebate values (bars) and the likely price change of a 5kW solar system.

Solar Rebates – What’s currently available?

Right now, if you buy a solar power system, you get a point-of-sale discount. This was once known as RECs and is now called STCs. The amount of solar rebate you get depends on how many panels you install – and which zone you are in. For example, a 5kW system in Zone 3 will attract 103 STCs. This is not the same as Solar feed-in-tariffs.

The price given for STCs changes as well. This depends on a. the market and b. how much your installer “buys” your STCs for. Right now a typical price is around $37 per STC. The MAXIMUM price you can ever get for STCs is $40.

This means, right now in Zone 3 (check out this map by SunWiz for zones) you could get about $3,811 off your solar system! Next year this would drop to just $3,552 – meaning you pay an extra $300 for your 5kW system!

Solar Rebates – What’s at stake?

5kW solar system – next year rebate drops by $259!

50kW solar system – next year rebate drops by $2,590!

Each year you delay will cost you more in lost STC incentives.

Solar Rebates – won’t prices drop anyway?

Solar power system prices have dropped a lot in recent years. But this won’t necessarily continue – and almost certainly not to the extent we’ve seen in the past 5 years. So if you’re hoping that price drops might “pay for” your loss in rebates – think again. The drop in solar rebates will almost certainly drive prices up for consumers. Making 2016 THE YEAR to get solar put on your roofs. Get started now with solar quotes from Solar Proof!

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