How to Claim Your Solar Energy Incentive in NSW
On average, Australia enjoys more sunlight than any other continent so has the best access to natural, renewable solar energy. Drawing on the country's enviable natural resource, the Australian government wants to increase the use of solar energy across the nation. Large-scale solar power plants and financial incentives for homeowners are making solar systems more affordable. But what does this mean for those who live in New South Wales? How can you claim back your solar energy incentive?
Renewable Power Incentives in NSW
The Australian federal government has a Renewable Energy Target (RET) that it must meet each year. To support this target, the government offers anyone who installs a small-scale solar power system on their home a financial incentive or discount. This scheme is known as the Small-Scale Renewable Energy Scheme (SRES).
The government calculates the amount of discount each homeowner receives using STCs (small-scale technology certificates). These are essentially a government-administered form of online currency. The value of STCs varies. Sunnier regions receive more STCs as their solar systems are expected to generate more power. Every megawatt-hour of energy produced by the solar system entitles the home-owner to 1 STC.
Generally, people from NSW receive about 30% off the full cost of their solar system through STCs. Say your 5kW system costs $12,000, you’ll receive a discount of $3,400. Not bad! The larger your system, the greater the financial incentive. But don’t worry, you don’t have to do the maths. If you assign your STC value to your system installer, they will subtract the exact sum from the quote you receive. They may also give you a cash payment for your STCs so that they can sell the certificates themselves.
Alternatively, you can sell your STCs via a clearinghouse system run by the Clean Energy Regulator. The clearinghouse offers a fixed price of $40 per STC (as of May 2019) but you can also sell your STCs on the open market. Because of this, the current STC market price will also affect the amount of discount you receive.
How to Apply for STCs in NSW
Most people use a registered agent to apply for their STCs. Accredited solar power companies have a registered agent on staff who will complete all necessary paperwork on your behalf.
It’s a little more complicated if you want to create and trade STC certificates yourself. But not impossible. First, head to the renewable power incentive web page at energy.gov.au to check your eligibility. Next, follow the link to the relevant Clean Energy Regulator web page and read all relevant information. Finally, click on the link "Claiming Small Energy Certificates" and follow the instructions. In simple terms, you’ll need to:
Ensure the solar power system you want to install is eligible for STCs
Calculate how many STCs your system is worth.
Complete compliance paperwork.
Join the REC registry and create your certificates here (certificates must be validated by the Clean Energy Regulator).
Find a buyer!
An Incentive to go Off-Grid in NSW With a Solar Battery System
The recently-elected Liberal Party in NSW has introduced a new incentive for homeowners to make the switch to a solar battery system. The Empowering Homes Program will offer no-interest loans to help those on a low income to buy a solar-battery system. To eligible for this program, you must:
- have a combined household income of less than $180,000
- be the owner and occupier of the home.
This offer is limited to 300,000 households and will help those who already have a solar system to progress to battery storage. The Empowering Homes program expects recipients of a loan to pay it back using savings they make on their energy bills. The savings could be significant, especially once the no interest loan is repaid.
Take advantage of NSW's generous solar energy incentives and plan ahead for your future energy supply.