Governments across Australia offer a range of incentives and assistance such as the following
1) Subsidising the upfront cost of installing a Solar Power System
If your system is under 100kW in size and you use inverters and panels which are approved to be used in Australia. Most people are eligible for up to $4,000 for residential and $50,000 for commercial. The incentives come in form of Small Scale Technology Certificates (STCs) or REBs. The STC price is like a share price – it may go up or down in value depending on the open market.
All of our prices you see advertised will already have the price deducted for the government incentive, but for an example, a 5kW system, which we currently have on special for $4,499 with a free upgrade to 6kW of panels, the incentive you would receive for this is approximately $4,000. So if the government stopped the incentive right now, the price would go up by $4,000.
Be aware though, from January 2017, the government subsidy will reduce by one fifteenth (6.66%) every year for the next 14 years until the incentive is gone. So in 2017, the incentive reduced from $4,712 on our previous mentioned deal, down to $4,397.87, which is $314 less. So the earlier you get solar, the more likely the bigger the incentive will be.
2) Feed in Tarrif for your excess power
The feed in Tarrif is another incentive to encourage people to get solar. This incentive is when the power companies pay you for the excess power your system produces and pumps back into the grid. Currently the feed in tarrif for WA is approximately 7cents per unit/kWh. So if your system produces 25 units and you use 15 units, the remaining 10 units you will export back into the grid at 7cents each. That works out 70cents total per day, which is $255.50 per year and over $1,200 every 5 years.