Can you claim STCs for a solar energy system and be eligible for the Solar Rebate?

STCs and Vic Rebate

In Victoria, there are currently 2 programmes running to incentivise installations of solar energy and solar hot water systems for residents around the state.

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1. STCs (Small-scale technology certificates) can be claimed by an installer on your behalf and the savings are passed directly to you, usually in the form of a discount on the cost of installation. The discount offered is based on expected power generation over a 15 year period or from the installation year until 2030 when the scheme ends (with 14 STCs awarded for every kw of solar generated by your system). STCs tend to cover about 33% of the installation cost of a system.

“Under the Renewable Energy Target, small-scale technology certificates are calculated based on system location, installation date, and the amount of electricity generated over the course of its lifetime—referred to as the deeming period.” (source)

2. The Victorian Solar Rebate – currently on pause until 1st July, the Vic Solar Rebate offers eligible households the ability to claim a rebate up to $2,225 on the cost of a solar panel (PV) system or a $1,000 rebate for the replacement of hot water systems with solar hot water.

From July 2019, Victorians will be able to install an eligible 4kW solar panel system for half price and pay the rest of the cost back over four years with an interest-free loan. The rebate will also extend to batteries.

The rebate must be applied for directly through Solar Victoria but is something we, as an installer, can help with. This means that on your quote you will see the benefits of the rebate included, but claiming the savings are not immediately passed on and must be claimed through Solar Victoria. Your solar energy installer must also supply documentation and accreditation to comply with the eligibility requirements of the rebate.

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Can you claim for STCs and the Vic Solar Rebate on an installation?

The answer is, yes!

Amazing, but true – you can claim for both STCs and the Victorian Solar Rebate (from 1st July) when you install a solar energy system in a Victorian property. With STCs covering about 33% of an installation cost and the Vic Solar Rebate eligible to cover up to 50% of the cost of installation, combining the two opportunities can result in some significant savings for a new energy system.

Here’s an example of a solar quote a customer might receive and the total cost of a system after the incentives are applied.

solar proposal example

And here are some figures as a rough guide when combining STCs and the Victorian Solar Rebate. These are based on the total rebate when combined.

STC Rebate STC plus VSR
3KW $1,446.77 $5,896.77
4KW $1,929.02 $6,379.02
5KW $2,411.28 $6,861.28
6KW $2,893.54 $7,343.54
6.5KW $3,134.66 $7,584.66

Both opportunities have terms and conditions, such as eligibility criteria, so they’re worth checking out, or call us and we can help you assess if your property and circumstances are eligible for either or both of these programmes.

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