Government Rebates & Feed-In Tariffs
On August 19th 2018 the state government announced an incentive for solar panels (PV) on your roof as well as solar hot water. The incentive was introduced to make solar panels more affordable than ever before. The package will provide a rebate on the cost of a solar PV system up to a maximum of $2,225.
The State government believes that the typical households can save $890 per year on their bill with a solar system around about the size of 4 kW. The $2,225 was a denoted figure of 50% of the cost of the solar system, at an average cost of $4,450 for a 4 kW solar system.
If you install a larger system or a system of greater cost than $4,450 then the government will still pay the $2,225, but no more than this amount. If the system cost $4000 then the government would only pay 50% of this total amount ($2,000).
With the incentive the state government has put forward 3 eligibility criteria. To be eligible for the incentive clients must meet these three criteria:
- Household income under $180,000 combined.
- Owner occupied – primary residence.
- Household property value of less than three million dollars.
If you are eligible and meet the criteria, there is a link on their website for your application: www.solar.vic.gov.au/solar-rebates. You can apply for the state government via a pre-application on this website, and will require a solar provider statement from your local solar installer. We offer this document to all prospective clients and will be happy to arrange on request. Please contact our office and this can be arranged.
At the moment many clients are looking to install a solar system around 5 kW which seems to be a generic standard at the moment. Using some ballpark figures, a 5/6 kW solar system could be worth up to $10,000 and the federal government will chip in STC’s (small technology credits) which will be deducted off the cost of an installation from all installers. If we use a round figure of $3,000 as a federal rebate, this reduces the cost of a solar system down to $7,000. Then the state government will refund you with their $2,225 (claimable after the installation is completed and returned to the client via direct debit or cheque). This would leave the client with an out of pocket cost of approximately $5,000.
These are only ballpark figures, but it shows that the state and federal government together are almost paying for 50% of the cost of a decent quality solar system.
To clarify the rebates further, the federal government rebate is claimed on behalf of the client by the installer, and the state government incentive is claimed by the client after the installation. The process of completing the application and lodging to the state government requires paperwork from your installation company. This can take two to three weeks to compile all the relevant information to complete the rebate process online. Note that it is in the interest of the installation company to complete this in a timely manner as the installation company is also out of pocket until the federal government rebate documents are completed.
The state government has also announced a battery incentive which is to take place as of July 1 2019. Although the announcement has been made alongside a promise of approximately 10,000 installations of battery systems, we do not have any formal documentation to be able to advise any specifics regarding the rebate as yet. If you wish to know more about batteries and the incentives please get in contact with Velocity Solar, and we will keep you on our mailing list to advise when we know more details.
If you wish to know more about the state and federal government rebates please put through an enquiry on our contact form, or feel free to call us on (03) 5243 8364. The government has tried to make the process as seamless as possible although we understand that there may be numerous questions that still need to be asked.