Solar-powered energy is the most efficient way for people looking for a suitable way to reduce their power costs. Solar rebates are incentives given by the government or utility agencies to its citizens, the homeowners for solar installation. Solar rebates are only given once. These incentives help the government or state in accelerating the solar adoption process by the homeowners or business owners in order to accomplish the government standards for the use of renewable energy. In South Australia, through the Australian government, solar rebates are given to those who purchase solar panels. This helps in reducing the prices of the solar panels very significantly. The solar rebates differ depending on the amount of solar power that your system generates, for example, 3kW has a rebate of around $1500 to $1850 whereas 10kW has a rebate of around $5,200 to $6,200. There are different kinds of solar power systems like solar panel systems, battery ready systems, and hybrid systems.
Forms of Solar rebates in SA
There are three different forms of solar rebates, as mentioned below.
– Federal Solar Rebates
The federal government issues a tax credit on solar, also known as (ITC) Investment Tax Credit. ITC allows a deduction to the homeowners and business owners from their taxes on the part of their solar costs. They qualify for a 26 percent federal tax credit of their solar costs less any cash rebates.
– Feed-in tariffs
Feed-in tariffs are financial credits given by the retailer for any form of extra energy not directly used by your property upon the start of a generation of solar power by your system. The feed-in tariff is separate from the solar rebates. Feed-in tariffs are credited for every kilowatt-hour of the electricity sent back.
– Government rebate schemes
These are tax credits given by the government upon the installation of a solar panel. This allows you to deduct part of the solar cost from the state tax.