A Guide to NSW Solar Rebates & Incentives
Solar power is currently an attractive investment for residents of New South Wales. This is
thanks to the federal solar incentives given by the Australian government and feed-in-tariffs from electricity retailers.
While it is easier to call this a “rebate”, the correct term to use in this case is an “incentive” from the NSW Government to encourage the uptake of solar. In this article, we will tell you everything you need to know about the available NSW solar rebates incentives, and how you can use it to save thousands of dollars off the cost of a new solar system.
NSW Government Solar Initiatives
The NSW Government aims to achieve net zero emissions by 2050. This ambitious plan is
supported by the power of solar energy. Because of this, the state government is offering
financial incentives to eligible households to help increase the uptake of solar power
amongst residents.
What this means: NSW residents can expect to save thousands of dollars when purchasing
a new solar panel and solar battery system. Now is a great time to switch to solar, because
these incentives will not be here forever.
What solar incentives can NSW residents get?
If you live in New South Wales, you have access to two types of financial incentives for
solar:
• Small-scale Technology Certificates (STCs)
• Feed-in Tariffs
An important thing that you need to know is that these incentives are either changing or
gradually decreasing in value each year. Although the incentives may not be as large as it
was years ago, it still can help you save thousands of dollars when it comes to purchasing a
new solar system.
How does the solar incentive works for NSW residents?
1. Feed-in Tariffs
A feed-in tariff (FiT) is a credit that solar users receive for excess electricity
produced by their solar power system. Unless you have a solar battery storage
system, any excess electricity produced by your solar system is usually “fed” back
into the electricity grid for other homes to use. According to Energy Australia “the
feed-in tariff is a set rate per kilowatt hour and paid as a credit on electricity bills.”
Feed-in tariffs make the installation of solar power systems more affordable and
reduce the payback time of the system by providing savings in electricity bills. The
feed-in tariffs amount can vary, depending on your electricity retailer.
Best Feed-in Tariffs in NSW
According to Australian comparison website, Canstar Blue, Origin Energy has the best solar
feed-in tariff in NSW. In their energy plan, eligible customers can get 22 cents per kilowatt
hour (c/kWh) for sending excess electricity into the grid. Red Energy comes in 2nd place
with feed-in tariff rate at 18c/kWh. Click this link to compare different solar plans for NSW.
2. Small-scale technology certificates (STCs)
STCs are sort of a discount voucher that can be used when purchasing a new solar power system. The number of STCs you are eligible for depends on factors such as, size of your solar system, the STC zone you live in, and the deeming period (number of years remaining until the scheme is phased out). Australia is divided in to 4 STC zones, with zone 1 receiving the highest STCs and zone 4 the lowest.
Zone ratings:
Zone 1 – 1.622 rating
Zone 2 – 1.536 rating
Zone 3 – 1.382 rating
Zone 4 – 1.185 rating
How Do I Claim STCs?
The good news is, your solar installer (like us) will normally take care of your STCs for you. We will calculate the amount of STCs you qualify for and apply that in our solar system quote to you. So, the solar system quote that you get, is already inclusive of the STC discount. During your solar installation, we will ask you to sign your STCs (vouchers) to us, and we will trade them in for monetary value.
If you want to claim the value of the STCs by yourself, that is also possible. But you will need to pay a higher upfront cost for your new solar system, register your STCs with the Clean Energy Regulator and wait in queue. The Clean Energy Regulator mentions that they cannot estimate how long it takes for STCs to sell. Therefore, we strongly recommend that customers let their solar installers take care of this process for them.
How Much Is the Solar Incentive on A 10 KW Solar System?
Let’s look at an example of rebate calculation for a 10kW system.
Solar Incentive for a 10kW solar system in Wahroonga, NSW
Estimated cost of system: $14,000
Estimated STCs eligible: 138 STC
Estimated Value of STCs: $37
Total Incentive: $5,106
Price of solar system after incentive: $14,000 – $5,106 = $8,894
You can use this online incentive calculator provided by Solar Quotes, to calculate how much discount you would be eligible for.
When Does the Solar Incentive Finish In NSW?
The quick answer is 31st December 2030.
The solar incentive was introduced in 2011 to encourage the uptake of solar energy in residential premises in Australia. But as well know, all good things must come to an end. Instead of stopping the incentive immediately, the Australian government chose a gradual phasing out of the programme, since 1st January 2017.
This means that once the incentive is phased out completely, solar users will stop receiving incentives for solar systems installed in their property.
What is the NSW Solar Battery program?
Empowering Homes – Solar Battery Loan Offer
The NSW government is assisting homeowners in eligible postcodes to access an interest-free loan. This loan is specifically for the purpose of installing a solar battery system that ultimately will help homeowners access clean energy, cut energy bills, and be self-sufficient in terms of electricity. Find out how to apply for the Empowering Homes – Solar Battery Loan here.
What’s in this offer?
An interest-free loan of up to:
- $14,000 towards a solar PV and battery system (repayable over a range of terms up to 8 years), or
- $9,000 towards retrofitting a battery system to an existing solar PV system (repayable over a range of terms up to 10 years).
*This offer does not include solar-only options.
Solar for Low-Income Households in NSW
The NSW government is trialing a solar programme for low-income households. The programme helps eligible low-income households reduce their electricity bills by installing 3kW solar systems on their home.
Do You Qualify for The NSW Solar For Low-Income Offer?
Eligibility criteria:
- currently receive the Low Income Household Rebate
- agree not to receive the rebate for ten years
- hold a valid Pensioner Concession Card or Department of Veterans’ Affairs Gold Card
- own your house
- not already have a solar PV system
- live in one of the following regions:
- Central Coast
- North Coast
- Sydney – South
- Illawarra – Shoalhaven
- South Coast
- if you are not the registered homeowner, but your spouse is, you may be considered eligible collectively as a household.
To find out more and apply for this offer, visit the NSW government website.
NSW Regional Community Energy Fund
The NSW Government introduced the Regional Community Energy Fund (RCEF) to help regional communities increase renewable energy generation, improve energy reliability and help communities save money on electricity bills. The RCEF is a part of the state government’s $30 million Regional Community Energy Program, designed to improve the reliability and affordability of energy for regional NSW communities.
This programme consists of 3 initiatives:
- Regional Community Energy Fund providing grants towards community energy projects that create innovative and/or dispatchable renewable energy capacity that benefits the local community.
- Regional Community Energy Hubs improving access to expert energy advice to reduce bills for households and small businesses.
- Grants for regional and remote communities installing emergency backup systems for key evacuation locations, such as a town hall, to improve resilience and reduce energy costs during regular operations.
1. What are the NSW solar incentives available for residents?
Residents of NSW have access to two types of financial incentives for solar energy:
1) Feed-in Tariffs
2) Small-scale Technology Certificates (STC’s)
What is the best NSW solar power feed-in tariffs?
A feed-in tariff is a credit that solar users receive for excess electricity produced by their solar power system. The feed-in tariff amount can vary, depending on your electricity provider. Compare and find the best feed-in tariff rates here.
Am I eligible for a solar incentive?
Small-scale Technology Certificates (STCs) incentives subsidises the upfront costs of installing a solar power system.
To be eligible, here are the requirements:
1) A PV system that is less than 100kW in size
2) Your solar installer is Clean Energy Council accredited
3) The solar components used in your installation are approved for use in Australia by the Clean Energy Council.
What is the best solar incentive in NSW?
At the moment, the best and immediate solar incentive for NSW residents is the Small-scale Technology Certificates(STCs). STCs are similar to a discount voucher that can be used when purchasing a new solar power system. They can deduct thousands of dollars off the cost of your new solar system.
This incentive is set to end on 31st December 2030. The deeming period for solar systems is decreasing each year until 2030. This will reduce the number of STCs that can be created for an eligible solar system. The earlier you claim the STCs, the more your can save off your solar systems.