Australia has many favorable conditions for solar power, which have helped the country become a global leader in renewable energy. Australia deployed 7 gigawatts (GW) of wind and solar power in 2020, and nearly 2.7 GW were in the rooftop solar market. The abundance of sunshine makes solar panels more productive, and high electricity tariffs make their production more valuable – each kWh from solar panels is one kWh subtracted from your power bill.
The Clean Energy Regulator has played an important role in the Australian renewable energy industry, with two main incentive programs. The Large-Scale Renewable Energy Target focuses on larger projects, while the Small-Scale Renewable Energy Scheme benefits smaller installations – including solar PV systems up to 100 kW. The SRES can be summarised as follows:
The total electricity production of your solar power system is estimated, considering the time period between its installation year and the end of 2030.
For every 1,000 kWh of estimated production, you get one Small-Scale Technology Certificate or STC.
Electricity retailers and other organisations that purchase large amounts of energy have a legal requirement to support renewables – this includes purchasing STCs annually.
The market price of STC is constantly changing based on supply and demand, but it has recently stayed at around $38-39.
As an example, a solar power system that produces 100,000 kWh between its installation year and 2030 gets 100 STCs. If they are sold at $39 each, this project gets an upfront incentive of $3,900 to help cover its installation costs (note these are just example figures to show you how the calculation works).
The Clean Energy Regulator has developed an STC calculator, where you can estimate your incentive when going solar. You simply need to input your postcode the planned solar capacity in kilowatts, and the expected installation date. The calculator will determine the STCs for the project, and you can multiply that number by $39 to estimate the financial incentive.
State and Territory Incentives for Solar Power in Australia
Since the STC incentive comes from the federal government, it is available for solar installations located anywhere in Australia. However, several states and territories have also developed local incentive programs, which can be added to STC rebates. The following are the main incentive programs from state and territory governments in 2021:
Solar Victoria offers solar panel incentives for homes and small businesses, and homes can also get solar water heater and battery incentives.
The home solar incentive is $1,400 as of July 2021, and it can be combined with an interest-free loan of the same amount.
The business incentive is available for solar power systems up to 30 kW. The rebate is $3,500 for the first 5,000 installations approved, and will then be reduced to $1,750.
South Australia’s Home Battery Scheme focuses on adding energy storage to solar power systems. The incentive is $300 per kWh for energy concession holders and $200 per kWh for other homes. In both cases, the maximum incentive is $3,000.
In New South Wales, the Empowering Homes program offers interest-free loans of up to $14,000 for new solar power systems with batteries and up to $9,000 for adding batteries to existing solar installations. The state also has the Solar for Low Income program, which installs 3-kW solar systems at zero cost for eligible homes.
In the Australian Capital Territory, the Next Gen Battery Storage program offers a rebate of $825 per kilowatt of battery output. The incentive covers up to 30 kW in residential systems and up to 50 kW in business-owned systems. The ACT Solar for Low Income is different from the program of the same name in NSW – it covers 50% of the cost of solar power systems, up to $2,500 per installation.
The Home and Business Battery Scheme provides $6,000 grants for solar panel + battery systems in the Northern Territory. The benefit is not only available for homes and businesses, but also for non-profit and community organisations. To be eligible for the incentive, the installation must have a battery capacity of at least 7 kWh.
Calculating Solar Incentives in Australia: A Brief Example
To demonstrate how STCs and other solar rebate programs make home solar power more affordable, we will calculate the total incentive for three system sizes in three locations:
6.6 kW, 8 kW and 10 kW
Brisbane (QLD), Sydney(NSW) and Melbourne (VIC)
Larger installations get more STCs, since the incentive depends on the estimated kWh production between the installation year and 2030. Solar panel systems also get more STCs in sunnier locations, since the kWh output per panel is increased.
Australia is divided into four zones for STC calculation purposes, where Zone 1 gets the most sunshine and Zone 4 gets the least. The number of STCs per kilowatt of solar capacity changes depending on the zone:
Zone 1 = 1.622 STC per kW
Zone 2 = 1.536 STC per kW
Zone 3 = 1.382 STC per kW
Zone 4 = 1.185 STC per kW
Brisbane and Sydney are both in Zone 3, which means the STC incentive per kW of solar capacity is the same. However, the incentive is decreased in Melbourne, being located in Zone 4. The following table summarizes the STCs for the three system sizes in the three locations, and the corresponding cash incentive at $38 per STC.
System Size (kW)
6.6 kW
8 kW
10 kW
Brisbane STC – Zone 3
91
110
138
Brisbane Incentive
$3,458
$4,180
$5,244
Sydney STC – Zone 3
91
110
138
Sydney Incentive
$3,458
$4,180
$5,244
Melbourne STC – Zone 3
78
94
118
Melbourne Incentive
$2,964 from STCs
+$1,400 Solar Victoria
$4,364 Total
$3,572 from STCs
+$1,400 Solar Victoria
$4,972 Total
$4,484 from STCs
+$1,400 Solar Victoria
$5,884 Total
Since Melbourne is located in Zone 4, the STC incentive is smaller than in Brisbane and Sydney. However, after adding the $1,400 from the Solar Victoria program, the total incentive is actually higher in Melbourne.
In this example, the solar installations in Melbourne would also be eligible for an interest-free loan of $1,400. The installations in Sydney would be eligible for interest-free loans of up to $14,000 from the Empowering Homes program if they include a solar battery.
In conclusion, incentive programs are one of the driving forces behind the growth of solar power in Australia. STCs can be claimed anywhere in the country, you get more of them in sunnier locations, and each STC reduces your upfront cost by around $38. The outlook is even better when your state or territory also offers incentives, since they can be combined with the STC rebate.
However, not all solar power systems are eligible for incentive programs. To get the STC incentive, you must use solar products in the Clean Energy Council approved list, and you must hire CEC Accredited Installers. A simple way to meet both requirements at once is working with a CEC Approved Solar Retailer like Arkana Energy.
Want to learn more? Click the button below to Request Pricing in your postcode today.
*information is accurate at the time of writing. Published 9 August 2021.
There are many reasons why going solar is an excellent investment for Australian homes and businesses. Local electricity providers charge some of the highest tariffs in the world, and solar panels can greatly reduce your power bills. Australia is also a very sunny country, which makes solar power systems very productive.
However, you can achieve even better results by installing solar batteries along with your panels, since you can store energy for nighttime or for cloudy days. You can also use a solar battery as a backup power source when there is a blackout. Solar panels are great on their own, but they cannot deliver electricity when there is no sunlight – you need a solar battery for this.
How Does a Solar Battery Work?
The basic principle of a solar battery is very simple. When your solar panels are producing more electricity than what your home or business is consuming, the difference is stored in the battery system. You can then use that electricity when your solar power system is not generating, instead of consuming expensive energy from the power network.
For example, you can use the energy stored in a solar battery to power your lights and home appliances at night, even when there is no sunlight. Without batteries, you would depend on your electricity provider to keep these devices running at night. Solar panels alone can greatly reduce your power bill, but a battery system makes you even more independent from the grid.
The Benefits of a Combined Solar and Battery Solution
Solar panels from quality brands can generate electricity for more than 25 years, while their payback period is often less than 5 years. During that time, they can help you save thousands of dollars in power bills. The only limitation of solar panels is not being able to provide electricity all the time, since they depend on sunlight. However, this issue disappears when you install a combined solar and battery solution.
With a combined system, your solar panels will continue to generate electricity like they normally do, but you can store part of that energy for any time of the day. You can also use more solar panels to increase your surplus production, ensuring that the batteries are always charged fully.
Normally, the surplus electricity produced by solar panels is sent to the grid, and you get a credit in your next power bill. However, the amount that electricity providers pay for each kilowatt-hour is much smaller than what they charge you!
On the other hand, when electricity is stored in solar batteries, you get to save the full value of that electricity.
There are some electricity tariffs with a higher kilowatt-hour price during peak hours, which are the times of the day when the grid has the highest consumption. If you have a combined solar and battery solution, you can use the stored electricity precisely when the highest tariffs are being applied – this maximises your savings.
Types of Solar Batteries in Australia
Most batteries that are used with solar panels can be classified into two main types: lead-acid and lithium-ion. However, most leading brands are now focusing on lithium-ion batteries, since they can store energy more efficiently, while lasting much longer. While lead-acid batteries may need a replacement in less than two years, there are now lithium batteries that can last for more than a decade. The Tesla Powerwall is a well-known example of a lithium-ion battery.
At Arkana, we only work with leading battery providers like Tesla, LG and Alpha ESS.
Things to Consider When Buying a Battery
Ideally, you should have a solar battery of the right size. A battery that is too small will only be able to power your home for a short time, before you are forced to use electricity from the grid again. However, a battery that is too large represents an unnecessary cost. If you have a battery with enough storage capacity for your nighttime needs, you can use solar electricity 24/7 – even when the sun is not shining.
Another important consideration before buying a battery is the size of your solar panel system. When you use solar panels by themselves, the system size is limited by surplus production. Once you start sending a lot of electricity to the grid, increasing the size of the solar array doesn’t make much sense – you are paid low for surplus production.
On the other hand, when there is a battery to store all the surplus production, you can use a larger solar array because all the electricity stays at home. There is no need to sell your extra kilowatt-hours to the grid for a low tariff.
How to Make the Most Of Your Battery Investment
Going solar is an excellent investment in Australia, unless you happen to live in a property that is covered by shadows all day long. However, with the abundance of sunshine and the high electricity prices, your return on investment is assured. When using solar batteries, the following are some recommendations that can help you save more:
Make sure you have a properly-sized battery: As mentioned above, a small one will not be able to power your home appliances for much time, while an oversized one will be more expensive than necessary.
Use the battery to avoid peak electricity tariffs: Since the energy in a battery can be used at any time, it makes sense to consume it when the electricity provider is charging the highest kWh prices or peak tariffs. This will maximise your savings, since you are avoiding the most expensive electricity from the grid.
Make sure you make the most of any battery incentives available. In some parts of Australia, there are incentive programs for solar batteries. These can help you with either cash payments or financing options, which help you pay for batteries, improving your return on investment.
Choosing a Battery Supplier – How to Buy Well
When purchasing a solar battery, you must make sure you get a product from a high-quality brand with a solid warranty. This will ensure high performance, and you will also get a free replacement if something goes wrong. You should definitely avoid low-quality batteries: you will get low performance, they will only last a short time, and they can even start a fire.
Other than having a good product, you must also make sure you work with a trusted installer like Arkana Energy. This way you will get a professional installation, combined with good customer service and technical support. When you purchase a high-quality solar battery, and the installation is completed by professionals, you can expect the best possible results.
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Recently the Australian Energy Market Commission (AEMC) released a draft reform designed to address growing concerns around power blackouts and grid “traffic jams”. The new plan, dubbed a ‘Sun Tax’ by Solar Citizens community interest group, has been proposed by AEMC to “make room on the grid for more home solar and batteries”.
Understandably there’s been a lot of interest in this new reform. But what does it mean for Australian solar users?
☀️ The proposed change will reduce the current solar feed-in tariffs. You will still be paid for exporting excess power back to the grid (known as feed-in tariffs) but the change will reduce monthly solar power feed-in tariff benefits for a typical Australian household by about $5-$6 per month according to modelling undertaken by the AEMC
☀️ The proposed plan doesn’t mandate default charges for exporting excess power back to the grid; this is something you will negotiate with your energy provider
☀️ The Australian power system wasn’t designed for power flowing both to and from households; it was designed as a one-way electricity flow to the premises. Currently, not all solar users can export their excess power back to the grid because of increasing “traffic jams”, the result of increased popularity in rooftop solar – hence the draft plan
It’s NOT all as doom and gloom as it appears.You can still sell your excess power back to the grid; you may make a little less than you once did!
Nonetheless, there’s a number of things you can do to make the most of your solar investment:
☀️ Shop around for the best deals for energy provider feed-in tariffs
☀️ Talk to us about installing battery storage. More than 21% of Australian households have rooftop solar, many households are now choosing to add battery storage to store excess power for use at night time or on cloudy days
☀️ Make sure your solar system powers all your electrical appliances including dishwashers, pool pumps, washing machines, hot water systems, heating and cooling to minimise the power you buy from the grid
If you would like to learn more about what solar can do for you, we’d love to talk. Call 1300 796 040 or visit www.arkanaenergy.com.au
The official release of the proposed AEMC plan can be found here.
We’re here to bring more positive energy into the world, pure and simple. It’s why we love solar so much – it reduces your power bills while helping repair the planet. So much positivity!
But before we get into the nitty gritty of why we love solar power, let’s start at the beginning.
What is solar power and how does it work?
Rooftop solar photovoltaic (PV) panels, with a little help from their inverter friends, work by converting power generated from sunlight to alternating current (AC) power that can be used to power your home, your business, your vehicle or exported to the grid for money. Energy you export to the grid is measured, calculated and sold to your electricity provider – this is referred to as a feed-in tariff. Any payments you receive from exporting your excess power to the grid appear as a credit on your bill from your electricity provider.
Essentially, solar power is energy that is generated from sunlight and converted to electricity.
Clear as sunlight? Great, let’s push on to just a few of the reasons why we ♡ solar power so much.
☀️ Solar power empowers the individual to take control of their environmental impact
Investing in clean energy sources means that as an individual you’re doing your bit to curb the effects of climate change. Change that is having an obvious and distressing impact on the world we live in.
In late 2019, record low rainfall contributed to a continent-scale natural emergency in Australia that killed millions of native wildlife and burned more than 5m hectares.1 In November 2020, Australia recorded its hottest month EVER as mercury rose to 50 degrees, causing a severe heat wave.2
How much and how quickly will Earth’s icebergs melt as the climate continues to warm? For the past decade the U.S. The Geological Survey Global Change Research Program has measured the rate at which glaciers in the Glacier National Park, Montana are melting and the results are staggering. “When President Taft created Glacier National Park in 1910, it was home to an estimated 150 glaciers. Since then the number has decreased to fewer than 30, and most of those remaining have shrunk in area by two-thirds”.3
Solar is not only a smart investment, it’s a major contributor to a sustainable future and a simple way for individuals to take control of their energy usage and environmental impact.
☀️ Solar power saves you money
Did you know in a single hour, the amount of power from the sun that strikes the Earth is more than the entire world consumes in a year? 4
The sun rises each day, emitting an enormous amount of solar radiation that costs nothing to produce or use.That’s why ‘going solar’ is one of the easiest and smartest investments you can make – delivering years of free energy and saving you thousands of dollars in power bills over the life of your system.
What people don’t think about though when they’re initially looking at the cost of a solar installation is the long game. Most solar installations deliver a 100% return on investment within five years (sometimes sooner). The bigger benefit comes after that though, as the system produces FREE energy for a further 15 to 20 years.
☀️ The solar industry employs thousands of Australians, and is expected to increase by more than 40% by 2025
The renewable energy sector has been through significant growth in recent years, the result of increased demand in renewable energy solutions. The highest demand for renewable energy sources has, in the past few years, come from rooftop solar.
In June 2020, the Clean Energy Council of Australia undertook the largest study of current and projected employment in the renewable energy industry. The study found that the sector currently employs over 25,000 people and could employ as many as 44,000 people by 2025.5 Given the ever-increasing demand for renewable energy, there’s no reason to believe that this estimate won’t be achieved. A win win for the environment and its inhabitants.
☀️ Solar increases the value of your home
Recent research conducted by realestate.com.au found that 85% of Australians believe that homes equipped with rooftop solar are more valuable (up to $10,000 more) than those relying on traditional electricity’.6 The research also found that 75% of renters would be willing to pay more for a property with solar power installed.
Is your roof-space wasted space?
☀️ Business can leverage the power of solar too
With a mix of government financial incentives, low-interest loans and immediate tax write-offs (for systems under $150,000), getting solar is not just environmentally friendly, it’s smart business.
Some business people might think of solar as an expense, but in reality, it’s an investment that’s highly cost effective and that delivers positive, long-term returns. Even business owners that don’t own their own premises can benefit from solar.
Australia has the highest average solar radiation per square metre of any continent in the world7; it makes perfect sense to leverage nature for your electricity needs – both for the benefit of the environment and your hip pocket.
With over 5000 installs under our belt, there’s so many more reasons why we ♡ solar.
For more information on how solar energy works, or how it might benefit you (and the world we live in) contact Arkana Energy on 1300 976 040 or visit www.arkanaenergy.com.au
With Greta Thunberg and her followers around the world taking on the climate crisis in the latest Climate Strikes, there’s never been a time where sustainable energy is more pertinent. There are no signs that it’s going to stop any time soon either. Wherever there’s talk of sustainability, you can guarantee solar will be close by.
We thought it’d be a good idea to share some of the latest developments within solar in Australia that have taken place in the last year or so.
In June of this year, Tesla’s second-biggest solar battery in Australia – after the 100-megawatt lithium-ion battery in South Australia – was opened in the north of Victoria. The 50-megawatt battery system feeds directly into the state electricity grid and has the capacity to power 16, 000 homes.
This is a big step toward Victoria’s renewable energy target of 50 percent by 2030. It will also provide a boost in energy security for Victoria, as last year’s heatwave, areas in north-west Victoria reached up to temperatures of 49 degrees! Having this integrated system means that the battery will still be producing and providing electricity in even the most extreme temperatures.
This farm may well be the launching pad for up to 8 more large-scale solar farms in the coming years.
Reports of rooftop solar panel systems lasting only 5 years have been regularly reported in Australia. In the rush to save money on electricity bills, it seems consumers in Australia are too often going for the cheapest options, and are being disappointed.
There is a call for higher regulated standards within the energy’s peak bodies. One thing for sure is that not all commercial solar is the same when it comes to installing solar panels it pays to make sure you get a trustworthy company that ensures high quality.
The Northern Territory government has responded to the climate change crisis by aiming for zero carbon emissions by 2050. Recognizing that they are one of the most sun-drenched states in Australia, they can see the obvious advantage hanging right above them: the sun in case you were wondering.
They are seeing this necessity not as a problem but as an opportunity. They believe there are also significant economic advantages and possibilities in making the switch to renewable energy sources. The 2050 zero-emission plan proposed states “a climate change response is a responsible economic strategy”, and they have place solar energy at the heart of that response.
The giant supermarket chain announced that they would buy most of the electricity generated by 3 impending farms to built outside Wagga Wagga, Corowa and Junee, NSW, over the next 10 years.
Steven Cain, chief executive of Cole’s group, wants Coles to be a leader in sustainable energy. They’ve spent up to $40m on energy efficiency over the last two years, and have many more plans in the pipeline.
No doubt they will see this investment returned as the price of solar continues to drop.
Extravagant plans to build the world’s largest solar farm in Tennant Creek, Northern Territory, which could export up to 3 gigawatts of power via a 3,800 km long cable to Singapore, may well be more than wishful thinking.
The 20 billion dollar proposal has already been backed by several Australian entrepreneurs, and will possibly be announced at the end of the year.
Mike Cannon-Brookes –one of the entrepreneurs – believes this could be radical for Australia, and that we may well have one of the most lucrative products possible to export to the world. This will depend on whether such a wild proposal can come into reality or not, obviously. A shift in perspective into the environmental and economic benefits of taking advantage of the unlimited resource we have here down under, burning away every day, may well be in order.
That’s it for now. Keep your ears and eyes open… solar is one of the most exciting industries in the world right now.
While it is not in the mainstream yet, the future of solar power will certainly revolve around batteries. One of the main ‘weaknesses’ of solar panels is that it relies on something that is out of our control. In other words, it relies on the sun shining.
Scientists in the energy industry have yet to discover how to control when and where the sun shines. If the sun has anything to say about it, it will stay that way for some time to come! However, one way, and indeed the main way, around this is batteries.
Tech giant Elon Musk, is one of the main pioneers in increasing solar power battery capacity. In revealing his technology he also believes Australian households may well be one of the first to take advantage of this exciting new technology.
In a trial in Townsville (not so far from Brisbane) a couple found that not only did they stop paying electricity bills, they actually had surplus to sell back. Elon Musk now believes it is possible for some people to live entirely off-grid.
It’s the perfect combination. Solar panels transform the sun’s energy which then have the capacity to power our lives, and the batteries store that energy so that when the sun doesn’t shine, the energy is still available.
As with all new technology, it’s hard to know how long it will take before it becomes the common method of power generation. However, with concerns about climate change and our increasing appetite for technology which uses a lot of power, renewable energy is not only a way of saving money, but is a critical technology for the future of our world.
Solar power batteries are a game-changer.
The battery storage technology relies on lithium-ion batteries – the same that you find in your phones or in electric vehicles. These are not quite up to scratch in terms of being a completely reliable, constant source of energy. They are still limited to how long they can hold on to energy. So places that have a lot of cloud cover or limited daylight will struggle.
In other places such as Southern California, which receives seemingly endless hours of sunlight, solar farms filled with solar panels are providing such an output of energy that some believe it is proof that fossil fuels will become a thing of the past. Battery storage is able to store the energy overnight until the sun comes back for the following day.
There is a similar climate to Southern California in Australia. Particularly in places such as Queensland with cities like Townsville and Brisbane. This is partly why Elon Musk believes Australia is ripe and ready for the future of energy.
How quickly technology improves…
While it’s hard to tell how quickly this technology will come to be the norm in Australia, and indeed the world, it’s pertinent to think about how quickly mobile phones became such a normal part of our lives.
The first iPhone was only revealed in 2007. That’s only 12 years ago! One of the main technologies that made these devices possible was battery capacity. As battery storage capacity increased it also increased the capacity of smartphones. Now where they are replacing our idea of what a computer is.
In a similar way, the future of energy could take a similar path. Battery storage technology gets better and better each year. Who would have thought that electric cars like Tesla could’ve been possible? Now they are becoming so normal to the point we barely even blink when we see one.
Though it might seem far away, with the increasing emergency of Climate change, the brilliant minds like those of Elon Musk and the ever increasing cost of living, Solar power batteries may well enter our lives sooner than we think.
There’s never been a better time to begin to invest in solar power and solar panels. Get in touch to find out more!
