Small-scale Renewable Energy Scheme (STC)

How does the government rebate work?

If you buy a solar system today, it is subsidised by a government scheme worth about $750 per kW installed. That’s around $3,750 off a typical 5kW system, which is usually applied at the point of sale (i.e. any advertised prices you see almost certainly have the rebate already applied).

But what most people aren’t aware of is that the dollar value of this ‘solar rebate’ could plunge at any time if demand for solar system suddenly increases.

What that means is that if the market for solar power runs hot, the value of the ‘rebate’ goes down in step with a thing called the ‘STC price’. The STC Price can be valued from $0 – $40. In other words $40 is the highest value it is allowed to go by law. The higher the STC price the more ‘rebate’ you get.

In April 2017 the value of the rebate was $39.85. Let’s call it $40. So it is basically as high as it can be. This translates into a rebate of roughly $767 per kW installed.

Fast forward to August 2018, the price is $29.

You can see the Clean Energy Regulator website for more information.