How do government solar incentives work?


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now how does the government incentives work the the map you see in front of you really refers to the amount of sunlight that falls on on Australia and so what they’ve done in the office of the renewable energy regulator is divide the country into four areas called zones uh we’re of course here at the moment in zone four but you can also see from South Australia all the way through to Queensland and parts of Western Australia that’s called zone three and then you’ve got zone two and Zone one is mainly desert in the inner part of Australia and based on the amount of sunlight the government is offering what they call small-scale technology certificates stcs and there are different amounts of those so for example if you were in Queensland here you would get 93 of those if you’re in uh Victorian zone four you get 79 if you are in Darwin you would get 107 and those certificates are worth 32 each so when you get your solar system what happens is you will sign a form on the day of the installation assigning your rights to those certificates to Eco energy AGL and of course they get sold on on the market or redeemed and they’re worth between two and a half thousand dollars and three thousand dollars depending on which part of the country you’re in but that is essentially the government giving a contribution to you towards the cost of your solar system percentage of the purchase price ranges between 25 and 44 of the cost of your system and the reason it ranges a little bit is because the government has a multiplier three times multiplier in the first one and a half kilowatts and from there a single multiplier onwards so you’ll find that nevertheless it’s quite a substantial contribution towards the cost of your system regardless of the size you’re buying now that government rebate which is a federal government rebate will be coming down by a third in June next year so you must have your system installed so that multiplier of three times will go to two and essentially uh what will happen is the number of certificates will drop by about 26 certificates which if you multiply that out by the 32 dollars is around 832 dollars to 992 in zone three so now we don’t know what’s going to happen to system prices overall however prices have come down a lot in the last 12 months and so that will have an impact on the retail price of Solar and I should say last year when these dropped a little bit as well there was a surge in demand towards the end so it’s probably best not to wait until we get close to that date to buy your solar system …