In 2011, the Australian federal government introduced solar rebates and incentives to encourage Australians to install solar power systems. But all good things eventually come to an end, so when does the government solar rebate end?
Solar panels capture solar energy from the Sun and convert it into electricity to power homes and businesses. This solar generated electricity reduces the amount of electricity imported from the power grid and thus reduces the overall electricity expenditure of a household.
Solar power is undoubtedly an attractive option in Australia. But why is it considered an appealing option in Australia? The long hours of the bright sunshine, sky-touching price of electricity, chance of saving money on electricity bills, and the most attractive solar rebates and incentives. All of these things make solar power an attractive option to the Australian residents and make solar power an investment worth the money.
Over the last few years, we have seen an incredible decrease in the prices of solar power systems, but it is still a significant investment for home and business owners looking to reduce electricity bills. The Australian federal, state and local governments offer solar rebates and incentives to make solar power more affordable and accessible.
Solar rebates and incentives usually take the form of rebates and tax benefits. These incentives can help to reduce the solar system cost by 26 to 50 per cent.
When does the Australian Federal Government solar rebate end?
The solar rebate offered by the Australian government is set to end on 31st December 2030. The Australian federal government decided that it is better to gradually phase the solar rebate out instead of ending the rebate immediately. The government decided to phase out the solar rebate gradually within 15 years, taking it up to 31st December 2030.
As a result of this decision, the Australian government solar rebate started phasing out on 1st January 2017. Once the solar rebate ends, people will not receive incentives for installing solar panels for both commercial and residential projects.
Is the Australian Federal Government solar rebate reducing in 2021?
Starting from 2017, the solar rebate is reduced every year on 1st January. Thus, the amount of solar rebate offered in 2021 is less than the amount provided in 2020. Currently, the solar rebate offered is the highest it will ever be in the coming decade. The solar rebate amount will eventually come to zero by 2030.
Similar to solar rebates, the percentage of the solar tax credit is also reducing. The federal solar tax credit of 26 per cent is available for residential solar systems installed by 31st December 2022. The residential solar tax credit will decrease to 22 per cent in 2023. In 2024, the solar tax credit for residential solar systems will come down to zero per cent.
Am I qualified for a Australian Federal Government solar rebate?
You will be qualified for a federal solar rebate on two conditions.
- Install a solar power system that is less than 100kWh in size.
- Install the solar power system through a solar installer accredited by the Clean Energy Council (CEC).
How does the solar rebate work?
There are two major factors, location and size, that affect how the solar rebate works.
Places that receive long hours of bright sunshine generate a higher amount of solar energy. You will receive a higher amount of solar rebate if your solar panels generate more electricity. For example, a homeowner living in Western Australia will receive a higher amount of solar rebate than a person who lives in a state with few hours of sunshine.
The size of the solar power system is another factor that determines the amount of solar rebate a homeowner will receive. For example, a more extensive solar power system will generate a higher amount of electricity. Therefore, it will attract a higher amount of solar rebate.
Who pays the rebate?
The government pays the solar rebate through the sale of small-scale technology certificates (STCs). STCs are issued when the homeowners install the solar power systems. These STCs are then paid to the solar installer depending on the size of the solar power system and the location. If we put it in simpler words, then the Australian government pays the amount of the solar rebate to the solar installers in Australia. The solar installer passes the savings onto you when you buy the solar power system. The price of the STC paid to the solar installers depends on the supply and demand of solar power systems and the cost of STC will decrease if there is a high supply of solar power.
When is the Right Time to Switch to Solar Power?
Truth be told, now is the best time to switch to solar power for the betterment of your wallet and home. Solar rebates and incentives by federal, state, and local governments reduce the cost of solar energy by a tremendous amount. The amount paid as the solar rebates will continue to drop in the coming years. So, install a solar power system now if you can afford it
The price of solar panels and other solar equipment are continuously decreasing, as we have seen over the last decade. Many homeowners think that they should wait till the price of solar power systems drops down even further. Although this thought might seem like a brilliant idea, it actually is not, so, if you can afford to install a solar power system now, then you will be able to reap some additional benefits.
You will receive a higher amount of solar rebate and save money by slashing your electricity bills by a significant amount. You will also be able to enjoy free solar energy after paying off your solar investment within a few years.
Do not worry yourself if you cannot afford to install a solar power system now. The solar rebate will decrease and eventually end, but the cost of solar power systems will not end up being sky-high or unaffordable in any way. The price of solar panels will continue dropping as time goes by in order to make solar energy affordable and more accessible.
In conclusion, Installation of solar power systems is an investment made for a better today, tomorrow, and the future. If you are looking forward to switching to solar, then act now for a better solar rebate.