You might have come across an ad claiming that the rebates for solar panels will be reduced or cancelled in 2021. If you have thought of increasing the capacity of your existing solar system or going solar in the nearer future, then read this blog carefully.
First of all, there is no need to panic about the news that solar rebates will reduce in 2021. To understand the logic, you need to first understand what the rebate is.
What Is a Solar Rebate?
- According to the best solar company in Australia, when a homeowner or commercial property owner buys the solar panel, he gets certificates of a certain value.
- The issued certificates are Small-scale Technology Certificates (STCs), which get issued under the scheme, called Small-scale Renewable Energy Scheme (SRES).
- Based on the capacity of the solar panel and some other factors, the solar system owners get the STCs.
- According to the deeming period, the STCs can be claimed upfront. It means the cost of STCs gets deducted from the total cost of the solar system based on a predefined formula. This upfront claim reduces the total cost of the solar panel, which is termed as rebates for solar panels. The deeming period is the period from the year when the solar panel gets installed to 2030.
There are also some free calculators available online to count the solar rebates.
Will Solar Rebates In Australia Reduce In 2021?
Yes, it will be based on the deeming period. However, do not rush. Read further to understand whether you really need to invest in the solar panel now or you can wait till 2021. Based on the formula and the information shared by the best solar company in Australia, I will help you understand this in simple language.
- An STC can have a value from $ 0 to $ 40.
- The highest value of the STC in the year 2020 was $ 39.95.
- In the past month, the highest value of STC was $37.75
Based on all these facts, let’s calculate the solar rebates now in December 2020 and then in January 2021. Remember, January 2021 is just 2 weeks away. This calculation is based on the formula shared by the best solar company in Australia
According to the deeming period, the number of STCs will be issued to the solar owners. Some solar companies count the fees for the work they do to get the solar rebates for you. Consider the highest price of STC last month, which is $ 37, and deeming period, you will get the following rebates:
- Year 2020: $ 3700 rebate by getting 100 certificates
- Year 2021: $ 3367 rebate by getting 91 certificates
So, yes the rebate is reduced in 2021 by $ 333.
Should You Invest In Solar Now To Get Solar Rebates?
The best solar company in Australia suggests waiting until 2021 if it is not really urgent because:
- You will not be able to save on power bills in the year 2020 as 2020 will end in 2 weeks.
- Even if you start the process now, the installation cannot be done before early 2021 so getting solar rebates as per the year 2020 would be impossible.