Government Rebates

All the key information about the current Federal Government Solar Rebates.

Yes there are rebates available on the solar electric power system. These rebates have changed over the years and might continue to change. You should talk to your nearest LG installer to get the updated information or visit the Clean Energy Council website to see if there is any relevant copy about the latest rebate applicable to you.

There is currently one key rebate offered for solar PV systems in Australia. They are the Small-scale Technology Certificates (STCs).

Our authorised LG solar panel dealers will inform you about the latest level of rebates available. They can advise on how to optimise your incentives and the eligibility requirements but it is generally advisable in line with general consumer advice to double check the relevant rules yourself.

LG black solar panels look good on all roof types

Solar Credits are provided in the form of STCs, for people who have installed a new and eligible solar PV system (or other small generation unit). The STCs apply to solar systems connected to a main electricity grid and up to the first 20 kW of capacity for off-grid (stand alone) solar power systems.

The Clean Energy Regulator has established a voluntary 'Clearing House' as a central point for the transfer of STCs at $40. However, there is no guarantee around the timing of sale through the Clearing House, so system suppliers often choose to manage the risk of delays in finding a buyer in the Clearing House by selling the STCs on the market outside the clearing house, generally at a lower price which depends on supply and demand in the market.

The level of support provided by Solar Credits depends on the location and size of the system and the price of STCs. Households considering installing solar PV systems are encouraged to shop around for the best deal on their quality solar PV system. Cheaper solar systems rely on cheaper inverters and panels, and as you would like your solar panels to still produce power in 20 or 25 years, a quality system is likely to give you solid financial returns.

The solar rebates change regularly as the value of the STCs/solar credits fluctuates similar to shares. You should talk to your nearest LG installer to get the updated information or visit the Clean Energy Council website to find consumer related solar information about rebates and many other subject matter.

Yes, the solar power system rebate is given to the physical property address and not the individual. If you are a multiple property owner, then you can avail of the solar rebate for all your properties if they fall into the criteria as laid down by the government.

The government rebate is not applicable if

  1. Your solar panels are not certified/registered with the Clean Energy Council.
  2. If you did not use an accredited solar installer to install your solar power system.
  3. It is an old solar power system being re-installed.

Please do check the Clean Energy Council website for current changes or talk to your nearest LG installer to get the updated rebate information.

LG solar panels are CEC certified and are applicable for rebates

Energy companies do not give direct rebates but depending in the state you are in and on the energy company, you might be eligible for a Feed-in-tariff. Feed-in tariffs provide people producing their own renewable energy with a financial return for the excess power they feed-into the grid.

The feed-in tariff is available to households, community organisations and small businesses who install solar power systems no greater than 100 kilowatts in size. Unfortunately a lot of energy retailers now pay only relative low feed-in tariffs, so it is more advantageous to use the power your solar system generates.

For more information see the FAQs about feed-in tariff.

There are a few key eligibility rules to be eligible for solar rebate on your system:

  1. The solar system must be an eligible small-scale solar PV, wind or hydro system. A normal solar power system for your home normally is an eligible system.
  2. The solar power system must be installed at an eligible premise. Examples include houses, townhouses, residential apartments and shops.
  3. The solar system must be a new and complete unit.
  4. No more than one system at an eligible premise (address) is entitled to Solar Credits.
  5. Solar Credits may only be created once for a particular solar installation, irrespective of whether the certificates are created for a 1-year, 5-year or 15-year deeming period.
  6. The electric solar system must have been installed no more than 12 months prior to the date of application for STCs.

Please do check the Clean Energy Council website for current changes or talk to your nearest LG installer to get the updated information.

As a consumer you have the right to avail the solar rebate yourself or as a common practice n the solar industry ask your supplier to apply the rebate on your behalf and reduce the upfront system cost to you. Contact your LG dealer for advice.

You cannot move your solar system from the installation address if you have received any rebate. Generally, the terms of the rebate stipulates that the panels stay in the original location.

Once installed, the panels cannot be moved from their original location

Yes there is still a solar rebate available ranging from approx $1000 for smaller solar power systems to over $3000 for 5kW size solar systems. The rebate can vary in line with the trading value of small-scale technology certificates (STCs).

The detailed information is as follows: Solar Credits are provided in the form of tradable certificates called small-scale technology certificates (STCs) for eligible small-scale renewable energy systems including solar photovoltaic (PV) systems.

While it is possible for owners of renewable energy systems to create and sell the STCs themselves, in practice, solar power system installers often offer a discount on the price of an installation, or a cash payment, in return for the right to create the STCs. Householders considering installing small-scale renewable energy systems are encouraged to shop around for the best deal.

One STC is equivalent to one megawatt hour of electricity generated by your solar PV power system. The price of STCs changes according to market conditions. In the past three years one STC traded as low as $16 and as high as $38. As the owner of a solar PV power system, you can register, sell, trade or surrender STCs for systems up to 100kW.

What are the two ways I can be paid for my small-scale technology certificates (STCs/solar rebate)?

  1. Assign your STCs when you purchase your solar PV system to a registered agent in exchange for a financial benefit which may be in the form of a delayed cash payment or upfront discount on your solar PV panel system.
  2. Create the STCs yourself by finding a buyer and then selling and transferring them in the Renewable Energy Certificate (REC) Registry.

The level of subsidy will depend on a number of factors, including the location the solar system, the size of the system and the price of STCs at the time the system was installed.

Australia is divided up into various zones based on how much renewable energy can be generated by a solar panel in a given area. So the same sized system installed in Melbourne or Hobart (Zone 4) receives fewer STCs than those installed in Sydney (Zone 3) or Darwin (Zone 2) because Melbourne and Hobart have less sunshine so less solar energy is produced by your system, and therefore less CO2 abatement achieved.

The table below shows the different rebate for a similar system in various cities.

Ending how the STCs are traded

These rebates change regularly, depending how the STCs are traded and you should talk to your nearest LG installer to get the updated information. You can also look up information on the internet regarding small-scale (renewable) technology certificates.

The Renewable Energy Target is a Federal Government scheme that creates and oversees a market and a value for the emissions savings from solar power systems (and other renewable energy technologies).

The savings of CO2 emissions via solar electricity generation is being rewarded through tradeable certificates for small scale solar systems called Small Scale Technology certificates or STC’s. The governing body for this scheme is the Clean Energy Regulator.

When a solar system is installed a calculation can be done to confirm how many STC’s will be created over the life of your solar system, which is effectively a measure of the renewable energy generation from your system.

Solar system installation companies typically offer an up-front discount equal to the value they can get when they sell the STC’s. This means these STCs for your system are being handed over by you to the solar system installation company in lieu of some of the payment for the system. The solar system installation company then trades the certificates and gets cash in return.

It is important to understand several key aspects of these STCs:

  1. The Government does not pay you for certificates, nor does it set the price;
  2. As a tradeable certificate, STC value can and does vary over time and is not fixed;
  3. The quantity of STCs you may receive for a system varies depending on your location and when you create them;
  4. Suppliers who agree to offer you a price for STC’s must comply with certain rules and conditions set out by the Clean Energy Regulator and only approved companies may register and trade STC’s;
  5. If the STCs are not traded (cashed in) 12 months after creation they become null and void.

Most customers have the STCs treated like a rebate and have the value deducted from the sale price of their solar system. Most advertised prices for solar systems already have the rebate (STC value) deducted.

The number of Solar Credits created for a system will depend on the amount of renewable energy the system generates. For practical purposes in allocating certificates for small-scale solar panels installations, four separate solar zones have been identified in Australia.

For the purpose of allocating Solar Credits (which are a ‘reward’ for the clean energy you produce) all installations in a zone are taken to receive the same amount of renewable energy. For example: Solar PV systems in zone 3 which includes Sydney, Perth, Adelaide, Brisbane and Canberra will create the same number of STCs and potentially receive a similar level of support. The same sized system installed in zone 4, which includes Melbourne and Hobart, will receive fewer STCs as these areas have less sunshine so less renewable energy is produced.

In brief, as the solar system installed in Melbourne and the one in Queensland fall into different rebate calculation zones, the rebate will differ, but usually not too high amounts of difference.

solar system