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Solar Rebates & Tariffs

Rebates, Tax Credits, Feed-in tariffs (FITs) and Net Metering

A rebate or tax credit is an upfront discount on your solar system or a credit that will come off your tax bill. This is usually based on a government policy to provide a financial incentive to buy solar, in order to offset carbon emissions.

A feed-in tariff is the amount of money that you get paid for the electricity that you export to the grid. FITs vary greatly from region to region, year to year and government to government, so it is worth being clear on what FITs are available in your region, especially if you are likely to export a lot of solar.

Net metering is most common in the US and works slightly differently from a FIT. Net metering essentially works like a 1:1 feed-in tariff. In that in a billing period (let's say monthly), all the solar power that your system produced, is deducted from any power that your property consumed from the grid. This is quite favourable for solar owners, considering that the market rate for your solar power is considerably lower than what you pay retail for electricity, however you are essentially being paid the retail rate.

Australia

Solar PV Rebates - STCs (Small-scale Technology Certificates)

The main rebate available in Australia is the federal government's STCs (Small-scale Technology Certificates). This is available for virtually all Australian residential systems (and commercial systems up to 100kW). The rebate amount depends on several factors:

For example, a 6.6kW system installed in Sydney (Zone 3) in 2024 can typically receive around $3,000-$3,500 in STC rebates, while the same system in Melbourne (Zone 4) would receive approximately $2,500-$3,000.

Calculate your exact rebate: Use our STC Calculator to determine your precise STC rebate amount based on your postcode, system size, and installation year.

Battery Storage Rebates - Battery STCs

Battery storage systems are also eligible for STC rebates in Australia, with some important eligibility requirements:

Battery STCs are calculated separately from solar PV STCs, and both can be claimed together if you install both solar panels and a battery system. Use our STC Calculator to calculate combined rebates for solar and battery systems.

Important points about STCs

State Government Rebates

Victoria: The Victorian Solar Homes Program offers additional rebates for eligible households. Rebates vary and may include interest-free loans. Check the Solar Victoria website for current program details and eligibility requirements.

Other states: Some states offer additional incentives or rebates. Check with your state government energy department for current programs.

Feed-in Tariffs (FITs)

Feed-in tariffs are far more varied than the rebates, as each state legislates on the minimum FIT an electricity retailer must offer consumers, and each retailer may offer an additional amount on top of the minimum. FITs typically range from 5-12 cents per kWh, depending on your state and retailer.

Visit the government website EnergyMadeEasy.gov.au to compare plans from various energy retailers and find the best feed-in tariff rates available in your area.

United States

Federal Tax Credits - Investment Tax Credit (ITC)

The federal government offers a significant tax credit for solar installations through the Investment Tax Credit (ITC), also known as the Residential Clean Energy Credit:

Battery Storage: Standalone battery storage systems are also eligible for the ITC from 2023 onwards, provided they have a capacity of at least 3 kWh. Battery systems paired with solar can also qualify for the credit.

The tax credit is claimed on your federal income tax return and reduces your tax liability dollar-for-dollar. If your tax credit exceeds your tax liability, you can carry the remaining credit forward to future tax years.

State-Level Incentives

Many states offer additional incentives beyond the federal tax credit. Here are some notable programs:

Find state-specific programs: Visit the DSIRE (Database of State Incentives for Renewables & Efficiency) to search for programs available in your state.

Net Metering

Most states in the US have net metering policies for solar, though policies vary significantly by state and utility. Net metering allows you to receive credit for excess solar energy you export to the grid, typically at the retail electricity rate. Some states have transitioned to alternative compensation structures, so it's important to check your local utility's current net metering policy.

See DSIRE and filter for program type = "net metering" to see details for your state.

Feed-In Tariffs (FITs)

Feed-in tariffs in the US vary significantly by state and utility. Some states offer zero compensation for solar feed-in, while others offer generous FITs. Each state legislates on the minimum FIT an electricity retailer must offer consumers, although each utility retailer may offer an additional amount on top of the minimum as an incentive. Check with your local utility for current feed-in tariff rates.

Canada

Federal Programs - Canada Greener Homes Grant

The Canada Greener Homes Grant program offers financial incentives for energy-efficient home improvements, including solar and battery storage:

The program is administered by Natural Resources Canada and requires an EnerGuide evaluation before and after installation. Grants are provided as rebates after the work is completed.

Provincial Programs

Many provinces offer additional incentives:

Check with your provincial energy ministry and local utility for current programs and eligibility requirements.

Net Metering

Most Canadian provinces have net metering policies that allow you to receive credit for excess solar energy exported to the grid. Policies vary by province and utility provider.

Germany

Federal Programs

Germany offers several incentive programs for solar and battery storage:

Feed-in Tariffs

Germany's feed-in tariff system (EEG) provides guaranteed payments for solar energy fed into the grid. Rates are fixed for 20 years from installation and vary based on system size and installation date. Current rates are lower than historical rates but still provide a stable return on investment.

Battery Storage

Battery storage systems are eligible for KfW funding programs, with grants and low-interest loans available. Combining solar with battery storage can maximize self-consumption and reduce reliance on grid electricity.

United Kingdom

Smart Export Guarantee (SEG)

The UK's Smart Export Guarantee (SEG) replaced the previous Feed-in Tariff (FIT) scheme. Under SEG, energy suppliers with more than 150,000 customers must offer a tariff for exported solar energy. Rates vary by supplier and are typically market-based.

VAT Reduction

Solar panels and battery storage systems benefit from a reduced VAT rate of 0% (down from 20%) for residential installations, making solar more affordable.

No Upfront Rebates

Unlike many other countries, the UK does not currently offer upfront rebates or grants for solar installations. However, the VAT reduction and SEG payments help offset installation costs over time.

Net Metering

Net metering is not standard in the UK. Instead, the SEG scheme pays for exported energy, while imported energy is charged at your normal electricity rate. This makes battery storage particularly valuable for maximizing self-consumption.

South Africa

Tax Incentives

South Africa offers tax incentives for solar installations:

Municipal Rebates

Several municipalities offer rebates or incentives for solar installations:

Check with your local municipality for current programs and eligibility requirements.

Feed-in Tariffs

Feed-in tariffs vary by municipality and utility provider. Some municipalities offer favorable rates for excess solar energy exported to the grid, while others may have different compensation structures.

Other Countries

Many other countries around the world offer solar and battery rebates, tax credits, and feed-in tariffs. Here are some notable examples:

Important: Solar rebate and tariff programs change frequently. Always check with your local government energy department, utility provider, or a qualified solar installer for the most current information and eligibility requirements in your area.

For a comprehensive database of renewable energy incentives worldwide, visit: Wikipedia - Feed-in Tariff (note: information may not always be current).