Rebates — What They Are & How They Work
For anyone who has ever looked into solar before, the word "rebate" is a familiar one.
However, very few people are aware of what exactly it means.
Let's begin with what the rebate is not.
Rebates v.s Tariffs
Often the rebates available for the purchase of a solar system are confused with the feed-in tariff offered by energy retailers.
That is a payment for excess power produced by your solar array over and above what you need to power the appliances in your home during the day. It is not your rebate.
What then is a rebate?
A rebate is government incentive offered to encourage the purchase of a solar system for residential homes. Such an install is classified as a small-scale renewable energy system.
As a reward for reducing your carbon footprint, you are awarded a certain amount of Small-scale Technology Certificates (STCs). How many, will turn on the size of the system you purchase. The bigger your system, the higher your rebate.
The rebate is then subtracted from the total purchase price of your solar system and so drives down the amount that you pay.
The value of the STCs vary (turning on market stability or disruption), some times going higher and at others coming down. They are additionally marginally reduced at end of each year.
As of today, each STC is worth $31.
So, as an example, if you were to make a very wise decision and purchase a 5kW system now, you would be eligible for 77 STCs at $31 per certificate. Taken together, that comes to a rebate of $2,387.
Why not look into it? To find a solar solution that suits you, get in touch with us to speak to a friendly, informative and helpful consultant from Astra Solar now.