
RENEWABLE ENERGY CERTIFICATES (INCENTIVES)
Australia’s Renewable Energy Target is Government scheme designed to reduce green-house emissions (reduce coal-powered energy production) and encourage sustainable and renewable energy / electricity production. Australia’s renewable energy target is implemented via two schemes and at this stage is schedule to run until the year 2030.
AUSTRALIAN GOVERNMENT SOLAR REBATES:
- STCs (Small-Scale Technology Certificates) for SOLAR systems up to 100kW
- LGCs (Large-Scale Generation Certificates) for SOLAR systems over 100kW
STCs (SMALL-SCALE TECHNOLOGY CERTIFICATES)
Small-scale technology certificates are a financial incentive for individuals and small businesses to have solar installed at their homes or businesses. This incentive scheme provides a financial rebate for systems up to 100kW Each MWh (megawatt hour) that the solar system produces until 2030 is worth 1 credit / STC. The great part is that they credits are paid upfront, at the time of installation, so that the upfront system cost is effectively reduced to make it more affordable. The rebates are calculated and reduced every year up until the year 2030, so the longer you wait to instal solar, the less the rebate will be. This is why the solar installation business is always so busy towards the end of the year, because everyone is trying to get their solar installed before the rebates are reduced at the turn of the new year. Your solar provider will sort out and manage the application for your solar rebate, so that you don’t have to worry about it.
LGCs (LARGE-SCALE GENERATION CERTIFICATES)
LGCs are a financial incentive for businesses and companies to have larger scale solar systems installed. We call solar systems that are larger than 100kW, “Power Stations”. The certificates (rebates) are generated for each MWh (megawatt hour) that the system generates.
Unlike STCs, LGCs cannot be claimed up front and can only be claimed retrospectively, based on the actual measured energy production of the system.
For Tax advice, please visit https://byfordaccountants.com.au/