With high energy prices around Australia, choosing renewable energy for your power and hot water needs is a smart move to deliver energy savings for you and your family.
Over the years, one of the common barriers for homeowners making the switch to renewables has been the upfront cost. However, you can reduce the cost of your solar power, solar hot water or heat pump water heater system thanks to government incentives. In this article, we will explore the federal and state programs available that you may be able to take advantage of for additional savings.
Federal government incentive: Small-Scale Technology Certificates
Small-Scale Technology Certificates (STCs) are available for an installation in every state of Australia. The financial value of the STCs can be used as an upfront discount to reduce the price of your new system, which could help you save hundreds of dollars.
How much you could save depends on:
- Your location (or zone): Australia is divided into different climate zones generally aligned by postcodes, with each based on their solar radiation level and climatic conditions;
- The type, size and model of the system installed; and
- The amount of electricity in megawatt-hours (MWh) a PV system will generate or the amount of electricity in MWh a solar or heat pump water heater will displace from the time of its installation until the end of 2030.
Learn more about what you could be eligible for.
Note: There are five climate zones in relation to heat pump water heater installations.
State government incentives
New South Wales Energy Savings Scheme
The NSW government’s Energy Savings Scheme (ESS) provides a financial incentive in the form of Energy Savings Certificates (ESCs) to install energy-efficient renewable appliances.
ESCs can be combined with STCs for an additional discount on a solar hot water or a heat pump water heater installation. The number of certificates applicable to a particular system depends on:
- The water heater you are installing;
- What the new water heater is replacing, i.e. electric or gas; and
- Your location by postcode
Learn more about the ESS program and how much you could save.
Victorian Energy Upgrades
The Victorian Energy Upgrades (VEU) program offers Victorian Energy Efficiency Certificates (VEECs) for replacing electric or gas with a renewable hot water system. It can be combined with STCs for additional savings.
The financial value of the VEECs depends on factors such as the water heater you are installing, the water heater being replaced, and your location by postcode. Depending on the upgrade/s, the average household can save up to $1,100 a year on energy costs.
Victorian Solar Homes Program
The Victorian Government also offers a solar panel (PV) rebate as part of the Solar Homes Program. The rebate of up to $1,400 is deducted from the upfront cost of the system by an authorised solar retailer, encouraging eligible households to make the switch to solar power.
To reduce installation costs even more, eligible Victorians can apply for an interest-free loan equivalent to their rebate amount to be repaid over four years or sooner in one lump sum.
South Australia Retailer Energy Productivity Scheme
South Australia’s Retailer Energy Productivity Scheme (REPS) requires energy retailers to help and incentivise households and businesses to make the switch to renewables to reduce their energy costs and carbon emissions. These incentives include discounts on services, cash rebates, and vouchers.
Under the program, electricity retailers have energy efficiency and audit targets they must meet. If you are a homeowner in South Australia, you can contact Solahart to see what savings you may be eligible for when you replace an electric or gas water heater with a renewable option.
Queensland Climate Smart Energy Savers Rebate
Queensland’s Climate Smart Energy Savers program offers between $300 and $1,000 cash-back on the installation of eligible energy-efficient appliances. There are two types of rebates:
- Standard: Available to all eligible Queensland homes.
- Low-income: Available for households with lower annual income.
- One rebate is available to eligible households who replace an old appliance with a 4-star-rated (or higher) energy-efficient appliance or hot water system.
- The new appliance must have been purchased and installed on or after 4 September 2023.
- Rebate of between $800 and $1,000* is available for the installation of heat pump and solar hot water systems.
To learn if you qualify for this rebate, visit: https://www.qld.gov.au/housing/home-modifications-energy-savings/climate-smart-energy-savers/about
Some of these government incentives are reducing over time and others may not be available indefinitely. Take advantage of these opportunities to lower the upfront cost of renewables and start saving today. For more information on the financial incentives you could be eligible for, contact Solahart today to get in touch with a local Dealer.