Solar Bonus Scheme
SOLAR BONUS SCHEME FORMULA
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How the Solar Bonus Scheme Financial Incentive Works
Here's the scheme in a nutshell:
1) The government creates pieces of paper called Renewable Energy Certificates (RECS).
2) The government mandates that the filthy fossil fuel generators have to either build a certain amount of renewable generation (wind/solar) or buy the right to other people's renewable energy systems in the form of RECs.
3) When you go and buy a solar power system for your roof, the government gives you a certain number of RECS depending on how big your system is and how much sun your part of Australia gets.
4) The special type of RECs that you get for a small business or residential solar system are called "Small Scale Technology Certificates" (STCs).
5) You (or more likely your solar dealer/ installer) sell the STCs to the filthy fossil fuel generators and use the cash to offset the upfront cost of the solar system purchase.
6) The STC price is a bit like a share price - it fluctuates on the open market depending on supply and demand. E.g. when the solar industry is booming (usually just before the rebate is cut!) then the STC price drops and vice versa.
7) The current STC price at time of writing is about $37. You can see the current market price of a STC here. Look for the number in the box in the bottom RH corner labeled: STC.
8) Almost all solar system prices you see advertised will already have the solar rebate Financial Incentive included in the pricing.
Assignment of STC Deducted from system on a supply and demand rate of the following cost:
STC 5 (kW) x 1.382 (Zone 3) x 13 years (calculated to 2030 Years) = 89 STC's x $30 (November 2017) = $2,694 (minus processing fee).
Why you should consider getting a solar quote sooner rather than later
As mentioned above, the amount of 'rebate' you can claim depends on the current market price of an STC and time of installation as you lose a years worth every year leading up to 2030.
At the current market price, for a 5 kw solar system the 'rebate' is worth roughly $540 per kW installed.
However, in times of high demand for solar panel installations, lots of STC's are created. When supply of STC's increases, the price of STC's generally decreases (Supply and demand ).
A few years ago, when the government really looked like it was going to scrap the rebate entirely, demand for solar installations caused the price of STC's to drop to $17.50 - nearly half of what it is now.
If you get a quote now, you'll be locking in the current 'rebate' based on an STC price of $30 - but if you wait, the STC price could drop and significantly reduce the savings you can claim.
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