The Government Gives Me What?

No doubt you ’ ve already heard about the “Government solar incentives” probably more times that you can count with all the facebook ads plastered everywhere What’s actually going on ? And do you actually get $7,000 back..?

The short answer is; maybe Let’s take a look at how they actually work and what you can get

First things first, this type of incentive operates on something called STCs (Small-scale Technology Certificates) A residential solar system under 100Kw (KiloWatts) is eligible, provided you purchase a full new system Simply replacing an old inverter, for example, means you are not eligible.

There are 3 factors that are used to calculate the value of an STC

1) The size of your system: Bigger means you get more, but the system also costs more (it scales with the system size).

2) Your climate zone: QLD access this slightly differently than we do in NSW

3) The deeming period: Every calendar year the value of any given STC drops slightly (it will continue this trend every year until 2033, when it finally drops to $0).

There are a few ways companies will tell you they use the “incentive” A lot will tell you they use it to cover the upfront cost (deposit) if you chose to go down the finance route Others will increase the overall cost of the system to include the incentive so they can keep the extra cream

In reality, a 6 6kW system will get you around $2,600 from the government and the remaining cost, depending on the type of gear you choose, will be between $5,500 to $9,500 at the top end.

STC's are issued to you when your new solar system is commissioned. The installer will submit paperwork detailing every panel and inverter barcode plus photos proving the installation meets standards. This ensures you are getting a brand new solar system.

You'll be asked to sign the SCT's over to the installing company. Why? What you're issued are literally certificates, and to get their value in cash, you need to sell them on the STC marketplace. Your installer will always take the STC value off the price they give you because of this.

You Want How Much?

Typically, you will get two options when it comes time to talk dollars and cents One; pay for the system outright Two; finance the system through the installer.

“Interest free”, “0% interest”, " no upfront cost" - sounds pretty good right? Well, more often than not, interest free means instead of adding interest annually - like your home loanthere is a lump-sum added onto the total cost of your solar system! Sometimes this additional cost can be as high as 22% had you opted to just pay for it upfront

Occasionally (and area dependant) we sometimes see true interest-free loans offered through the government. If you work with a trustworthy solar company, they will be able to provide the relevant information

At the end of the day, if your home can accommodate a solar system that is properly sized to knock your bills down a significant amount, the money you spend either upfront or through financing is better off in solar compared to throwing more and more into infinite (and of recent times) rapidly increasing electricity bills.

Simply put, if you pay $500 per quarter, that’s $2000 a year a top line $10,000 solar system will pay itself back in just 5 years! The expected, and warrantied, life-span of the panels is 30 years

Now bear in mind that quick calculation doesn’t factor any increases in electricity rates do you remember seeing on the news a projected rise in the next 12 months of another 50%+?

Do the math yourself with your bills However do me one favour please If you decide to look at how much money you ’ ve spent on electricity since you owned the home, please be seated