At Next Generation Energy, many of our customers wonder, “Are there any government incentives for installing solar?” The answer is yes, and these incentives are known as Small-Scale Technology Certificates (STCs). Although often referred to as a “rebate,” STCs function as a market-based incentive aimed at reducing the upfront cost of your solar system.

Introduced as part of Australia’s Renewable Energy Target, STCs are awarded based on the size of your solar installation. For instance, a 6.6kW system typically qualifies for 63 STCs, with each certificate currently valued at around $39 in the market. A larger system, like a 20kW setup, would be eligible for 191 STCs, offering an even greater reduction in your system’s purchase price. 

These STC’s are based off the size of the system. eg A larger system = more STCs

At Next Generation Energy, we simplify the process by incorporating the value of STCs directly into your quote as a pre-sale discount. This means the price you see already reflects the savings from STCs, eliminating the need for you to handle any additional paperwork. Once your system is installed, we manage the STC claim process, ensuring that you benefit from this incentive without any extra hassle.

While the value of STCs is gradually decreasing each year, this change is happening incrementally. Since the phase-out began in 2017, the number of years of STCs awarded has been reduced by one year annually, and this will continue until the program concludes in 2030.

Although STCs are reducing by about 7% each year, the financial benefits of installing solar remain strong. By choosing to go solar now, you can take advantage of the current STC values and enjoy significant savings on your energy costs.

In addition to STCs, homeowners in Victoria may also be eligible for the Solar Victoria rebate, which further reduces the upfront cost of installing solar. At Next Generation Energy, we apply this rebate as a pre-sale discount, meaning your quote will reflect the savings if you qualify reducing your out-of-pocket expense. 

To be eligible for the Solar Victoria rebate, you must meet the following criteria:

• Combined Household Income: Your household’s combined income must be less than $210,000 per year.
• Property Value: The property where the solar system will be installed must be valued at less than $3 million.
• Previous Solar Installation: The property should not have had a solar PV system installed in the last 10 years.
• Solar Homes Rebate History: The property must not have received a Solar Homes rebate previously.

There are also interest free loans and solar for rental packages available, talk to our experts to see what is available for you. 

The NSW Battery Rebate is a new initiative launching on November 1, 2024, that provides financial incentives to homeowners and businesses in NSW who install battery storage systems. The rebate aims to help reduce the upfront cost of battery installations, making it easier for residents and businesses to store solar energy and reduce reliance on the grid during peak hours.

How much can I save with the NSW Battery Rebate? Eligible participants can receive between $1,600 and $2,400 off the cost of installing a battery storage system. The exact rebate amount depends on the size of the battery, which must be between 2 kWh and 28 kWh.

Can I combine the NSW Battery Rebate with other incentives? Yes, the NSW Battery Rebate can be combined with other incentives such as STCs (Small-Scale Technology Certificates) for solar installations, providing even more savings on your energy investment.

How does connecting to a Virtual Power Plant (VPP) work? A VPP allows your battery to be used as part of a network that helps stabilise the grid during peak demand times. By connecting to a VPP, you can earn additional financial incentives and contribute to a more reliable energy grid.

Can I install a single-phase solar system on a three-phase property? Yes, you can install a single-phase solar system on a three-phase property. The electricity meter installed on your property reads the total energy consumption across all three phases, not individually per phase. This means that the solar power generated on phase A can offset the electricity usage on phases B and C, providing benefits across all phases of your property.

While a single-phase system can work on a three-phase property, we recommend installing a three-phase solar system for several reasons:

• Reduced Voltage Rise: A three-phase solar system distributes the generated solar power more evenly across all three phases. This helps in reducing voltage rise, which can occur when a significant amount of solar power is generated on just one phase.
• Improved System Performance: By balancing the load across all three phases, a three-phase solar system can enhance overall system performance, leading to more efficient energy production and reduced energy losses.
• Better Future-Proofing: As energy demands increase, particularly with the adoption of technologies like electric vehicles, having a three-phase solar system ensures that your property is better equipped to handle higher power loads without compromising on efficiency.

What Are Export Limits? Export limits are regulations set by electricity distributors that control the amount of power your solar system can send back to the grid. These limits are in place to ensure the stability of the grid, especially in areas with high solar penetration or where the electrical infrastructure is not designed to handle large volumes of exported solar energy.

General Rule of Thumb: For most solar systems, the export limit is typically set at 5kW per phase. This means that for a single-phase system, you can export up to 5kW of solar power back to the grid. For three-phase systems, the export limit can be up to 15kW (5kW per phase). Additionally, the maximum allowable inverter size is usually capped at 10kW per phase.

Exceptions and Lower Export Limits: In some areas, particularly where the electrical infrastructure is undersized or the grid is already heavily saturated with solar systems, the export limits may be lower than the standard 5kW per phase. This is often due to the local grid’s capacity to handle additional solar power. If you are in an area with lower export limits, it’s essential to design your solar system accordingly to avoid any compliance issues.

Applying for a Higher Export Limit: If your energy needs exceed the standard export limits, some electricity distributors may allow you to apply for a higher export limit. This typically involves submitting an application and may incur additional charges. The approval process varies by region and distributor, and it’s subject to the technical feasibility of the local grid. At Next Generation Energy, we can assist you with this application process and work with your local distributor to explore the possibility of increasing your export limit.

Why Export Limits Matter: Understanding export limits is crucial when planning your solar system, as these limits impact the potential returns on your solar investment. A system designed within the allowed export limits can maximidse your energy savings while ensuring compliance with local regulations. If you’re in an area with restrictive export limits, we can help you design a system that balances self-consumption with the potential to export surplus energy.

Feed-In Tariffs (FIT) are payments made to solar energy system owners for the excess electricity they generate and feed back into the grid. When your solar panels produce more electricity than your home or business needs, the surplus energy is exported to the grid, and your energy retailer pays you a rate per kilowatt-hour (kWh) for that exported electricity.

New South Wales: FIT rates can vary between retailers but typically range from 5 to 15 cents per kWh, depending on your energy provider and the specific plan you’re on.

Victoria: Similar to NSW, Victorian rates generally range from 6 to 12 cents per kWh.

It’s essential to check with your energy retailer for the most accurate and up-to-date FIT rates available to you.

What Is the New Solar Export Charge (Sun Tax)? Starting from 2024, certain electricity distributors in NSW, including Ausgrid, have begun implementing a charge for customers who export solar energy back to the grid during peak times. This is known as a “solar export tariff” or “sun tax.”

A charge of 1.2 cents per kWh is applied to solar energy exported to the grid during peak periods (10 AM to 3 PM).

In contrast, customers can still earn a payment of around 2.3 cents per kWh for exporting energy during off-peak periods (4 PM to 9 PM).

This charge will initially be an opt-in tariff, becoming mandatory by July 2025 for all export-ready customers.

Why Is This Happening? The introduction of these charges is meant to help manage the growing volume of solar energy being fed into the grid, which can cause strain on the infrastructure. The aim is to ensure fairness by requiring solar owners to contribute to the grid’s upkeep while encouraging more self-consumption of solar energy, especially during peak production times.

Should I Be Concerned? While the idea of being charged for exporting solar energy might be concerning, the actual financial impact may be relatively small for most households, potentially only increasing annual energy bills by a small amount (e.g., around $6.60 per year). However, for those with larger solar systems or who export significant amounts of energy during peak times, it might be worth considering energy storage solutions like batteries to maximise the value of your solar investment or implementing a zero export limit on your system to prevent any power going to the grid. 

If you’re considering installing solar or already have a system and want to know more about how these changes might affect you, feel free to contact Next Generation Energy. We can provide guidance tailored to your specific situation and help you navigate these evolving regulations.

For off-grid applications, we strongly recommend including a backup diesel generator as part of your solar energy system. It’s an investment in your energy independence, providing security and reliability no matter the weather conditions.

How Does It Work? A diesel generator is typically integrated into your off-grid solar system and programmed to start automatically when your battery charge falls below a certain level. The generator then runs for a set period or until the batteries are sufficiently charged, ensuring that you don’t experience a power outage.

A diesel generator provides a reliable source of power when your solar panels are not generating enough energy. This ensures that your home or business remains powered, even during extended periods of cloudy weather.

Battery Recharging: During times when solar energy production is low, a backup generator can be used to recharge your battery bank. This is crucial for maintaining your energy supply and preventing power outages.

System Stability: A backup generator adds an extra layer of security to your off-grid system. It helps to stabilize the power supply by kicking in automatically when battery levels drop below a certain threshold, ensuring that your electrical needs are consistently met.

Peace of Mind: Knowing that you have a backup power source can provide peace of mind, especially during winter months or in regions prone to long stretches of overcast weather. It allows you to maintain your usual lifestyle without worrying about energy shortages.