The world as a whole is looking at ways to reduce its carbon footprint, and the Australian government has committed to having 20% of its electricity supply come from renewable sources, such as solar energy, by 2020.
As part of this, the government announced the Small-Scale Renewable Energy Scheme (SRES), which provides households, small businesses and other community groups with a financial incentive to do their bit for the environment.
SRES replaced the Solar Credits Scheme in 2013, so here’s what you need to know:
How does SRES work?
Solar rebates in Western Australia work in the following way:
A household or business installs a photovoltaic (PV) solar system, which will produce a certain amount of kilowatts (kW) in perfect weather conditions, depending on which part of Western Australia the property is located and where the solar panels are situated on the property. Obviously, panels located in sunnier climes will generate more power, and will therefore be more valuable to the owner.
How are rebates in Western Australia given out?
Once a PV system has been installed, the government issues the household or business with a small-scale technology certificate (STC), which is linked to how much energy the solar installation is expected to produce over a period of 15 years. STCs are a commodity, with 1 STC equivalent to 1 megawatt-hour (MWh) of renewable energy. Therefore, the more energy produced, the more STCs a system is eligible for.
Because STCs are tradable, their value changes with supply and demand, as currency does. When demand for STCs are high, their value increases, and the opposite occurs when demand is low. STCs can be sold in a number of ways, including through the market, for a fixed price, or to an agent, for a discount or delayed cash payment.
Due to the nature of the system, it’s hard to predict just how much money you will receive as a rebate, but with the average solar panel having a lifespan of 30 years, there’s the opportunity to recoup the cost of installation and more.
If you want to know more about solar rebates in Western Australia, contact us today and we’ll help clear things up and let you know how valuable the sun your home gets could be.