Can I claim a rebate if I switch to solar hot water?
Yes, in most instances you can claim a Government rebate* if you switch to a more energy efficient solar hot water system. In this article we explain the Small-scale Renewable Energy Scheme and how you can claim your solar rebate.
* Note: The Small-scale Renewable Energy Scheme and small-scale technology certificates (STCs) are not a rebate, per se, although they are commonly referred to as the ‘solar hot water rebates’. It works through the creation of small-scale technology certificates (STCs) which, when claimed, reduce the cost of the purchase of your solar hot water system. Read on for more information…
What is the Small Scale Renewable Energy Scheme?
The Federal Government introduced the Small-scale Renewable Energy Scheme to encourage individuals and small businesses to install renewable energy systems in their home or business.
How does the Small Scale Renewable Energy Scheme work?
The Small Scale Renewable Energy Scheme works through the creation of small-scale technology certificates (STCs). The amount of CO2 emissions saved or generated by an appliance are calculated into STCs. Each STC represents 1 megawatt hour (MWh) of electricity displaced over a 10 year period. The number of STC’s created varies with the size and model of solar water heater and the region (or zone) in which the unit is installed. The value of an STC is not fixed and varies depending on market factors.
STCs can reduced the price of your new solar hot water system
By installing a solar water heater or heat pump, you may be eligible for STCs. These STCs can be used to reduce the purchase price of your new solar hot water system, potentially saving you thousands of dollars.
Once you install a solar water heater, the STCs produced can be traded and sold on the open market. Most customers assign the right to create your STCs to their hot water heater installer (i.e. Cheapa Hot Water) who will then pay you the value of the STCs as an upfront discount on your solar hot water system. Typically, when we install a solar hot water system for a customer we calculate how may small-scale technology cerficiates (STCs) will be created over the life of the solar hot water system, we then pass on an up-front discount that is equivalent to the value of the STCs.
It’s important to note that the value of STCs is not fixed and can vary over time. When you contact us about switching from gas or electric to a more energy efficient solar hot water system, we can explain the process in more detail and any discount that may be applicable.
IMPORTANT CHANGES TO SMALL-SCALE TECHNOLOGY CERTIFICATE (STC) RATINGS FROM JANUARY 2022
From 1st January 2022, the Deeming Period for the installation of solar hot water heaters and heat pumps is changing and will be reduced by 10% compared to an equivalent installation in 2021. The Deeming Period will be reduced by one year, each year, until the scheme ends in December 2030.
If you’ve been considering switching to solar hot water, it’s paramount you do so ASAP to take advantage of the STC rebates. Contact our solar experts for advice.
Switching to solar hot water and claiming an STC rebate
The Federal Government encourages people to switch to solar hot water and offers generous incentives to help you make the transition.
Solar hot water is our business and we’re here to make the transition from gas or electric to solar hot water simple and stress free. We can advise you on the best value solar hot water heater for your requirements and budget. Importantly, we complete all the necessary paperwork required by the Small Scale Renewable Energy Scheme and claiming any relevant STCs.
NEED SOLAR ADVICE?
Contact our experienced team for obligation free advice about the costs of switching to solar hot water and start reducing your energy bills (and your carbon footprint) today.