Solar Readiness for Strata - Section 7 - Government Incentives
When solar systems were first introduced into Australia, some people got government subsidized feed-in rates of over 60c kWh. As the cost of solar systems has decreased by 80% over the past 12 years, these subsidized feed-in rates are no longer offered. Those who have been getting those feed-in rates are for the most part coming to the end of the good times. The biggest confusion around rebates with solar systems is that feed-in is a government rebate. It isn't. It is something which is negotiated with your energy retailer as part of your electricity contract with them.
Small scale technology certificates (STC's)
These are federal government financial incentive. They are usually quoted in the net price of a solar system by a CEC accredited solar installer.
They only apply to solar systems which are under 100kW in size but this will be the vast majority of solar systems which are installed on residential strata buildings. Few people realize that the prices of the STC's fluctuate daily and the quote you get from your solar installer should itemise the price of the STC's used to calculate the rebate. If you want to check the STC price used by the solar installer and the market price, to see if they are not shortchanging the strata scheme, the daily rate can be checked on the STC calculator here. The range that the STC's have traded in since inception of the incentive is between $17 and $39. When STC's are at $39 then the "rebate" for each kW of solar would reach $585. By law, they can't trade higher than $40 per STC. In addition to daily price fluctuations, the overall value of the STC's is decreasing in value each year up to the year 2030.
Large Scale Generation Certificates
Large Scale Generation Certificates apply to solar systems which are over 100kW in size. It will be rare to retrofit a solar system of over 100kW onto a residential strata complex. However, some new residential complexes have much larger solar systems planned. For example Ed. Square in Edmonson Park has a 2.5MW solar system (video here). Large scale generation certificates are paid out in tranches each year from installation until 2030. If you are doing a large system, every year that you wait will create opportunity cost in terms of large scale generation certificates.
South Australia
Virtual Power Plant (VPP) rebate is not yet available for residential strata schemes but the rebate may be extended to strata schemes in the future.
Victorian State Government "Solar Homes Package"
Strata Owner Occupiers who don't already have an individual solar system with a combined income of up to $180,000 and property valuation of up to $3m are eligible to apply for this on top of the federal STC's. From July 2020 the Solar Homes Package is for an additional rebate of up to $1,850 or 50% of the price of the solar system, whichever is lowest.
Solar Victoria runs the "Solar Banks" grants, which give up to $2,800 per apartment for solar which connects to private apartments meters to reduce the cost of living.
Australian Capital Territory
ACT has a "Solar Banks" rebate of 50% of the cost of solar which connects to private apartments meters to reduce the cost of living. This can be matched with a 50% loan from Brighte for a $0 down solar sharing solution.
New South Wales State Government
The NSW Liberal government has pledged to provide 300,000 homes with a combined income of up to $180,000 per annum, no interest loans over 10 years of up to $9,000 for a solar system and $14,000 for a solar-battery system. An individual apartment or townhouse in a strata scheme could apply for this. It is not available to Owners Corporations to apply for this scheme. In 2024, there is a possibility that the NSW government will offer say $30m of grant funding for installation of solar on residential strata buildings (similar to the $10m of grant funding which was allocated to EV charging grants in residential strata buildings in 2023).
A new battery rebate was launched on the 1st November 2024 and is different from direct battery rebates. It is part of the Peak Demand Reduction Scheme (PDRS) being run by the NSW government. It is only relevant to batteries where the battery size is between 2kWh and 28kWh. There is $0 rebate for batteries which are larger than 28kWh. The exact value of the rebate will fluctuate in a tradeable market similar to the NSW Energy Saving Scheme ESC certificates, except these are called Peak Demand Reduction Certificates (PRC's). Examples of batteries which are eligible are Tesla Powerwall 3, Tesla Powerwall 2, BYD, Energizer, Enphase, Genz, Goodwe, iStore, Powerplus, SolaX, Sungrow, Zenaji, SolarEdge, Sonnen, Eguana, Fimer, Soltaro, Sunpower, Varta, Bluetti, SigenStor and Lavo (Hydrogen). You also have to use a 'certified installer' and sign a nomination form and give this to the certified installer. The size of the rebate is dependent on the size of the battery and the postcode. For example, a same sized battery installed in Wagga Wagga will get a higher rebate than the same sized battery installed in the northshore of Sydney.
Typically there is a $1600-$2,400 rebate upfront on the battery.
Also, if the battery is connected to a Virtual Power Plant (VPP) you are also entitled to a rebate of $250 to $400. The VPP rebate can be claimed twice, but the timing of each claim must be 3 years apart.
www.energy.nsw.gov.au/households/rebates-grants-and-schemes/household-energy-saving-upgrades/install-battery
The NSW Government launched the Solar for Apartments (SoAR) Incentive on 28th February 2025 with $25m funding:
-50% co-funding capped at $150,000 per apartment block
-Minimum of 3 lots and no more than 55 lots
-Applies to individual solar systems, shared solar or embedded networks
-Stratas mustn’t have had solar installed in the last 10 years
-Payback needs to be under 10 years
-Common area meter can be connected to solar sharing but can’t consume over 40% of total solar generated
-Balance needs to be paid for by ALL owners on unit entitlements
-Not able to use power purchase agreement (PPA) solar finance
-Waterproofing under the solar system can be included
-Essential meterboard upgrades can be included
-Only for strata buildings, not for company title
-Not more than 30% of the solar generated can feed into the grid
-Doesn’t apply to batteries but you can apply for NSW Peak Demand Reduction Scheme for batteries which you want to incorporate
-Requires 3 quotations from solar installers
-Installs must be completed by March 2026 for successful applicants
-Any owner can register an expression of interest but will need the last annual financial statement and the strata insurance policy.
Watch our video overview on SoAR here and read an article on SoAR here. According to Prime Minister Albanese, only 3.5% of apartment buildings in NSW have solar, which was quoted from Wattblock's Electrify Strata project!
Queensland State Government
Body Corporates in queensland were able to access grants of $3,000 to purchase batteries or combined solar-battery systems but this program has been fully subscribed and is no longer offered.
Victorian State Government
A scheme jointly funded by the Victorian and Commonwealth governments just concluded a second round of grants, but no further rounds have been announced at this stage. On offer was up to $2,800 per household, or up to $140,000 per property for buildings of up to 50 apartments.
Northern Territory State Government
The federal and NT governments are backing a scheme that provides up to $7,500 per individual dwelling, to support up to 50% of the total installation costs of a shared solar system.
Local Government Subsidies
In NSW a number of local councils have offered an additional subsidy to strata buildings wanting to install solar. These include North Sydney, Waverley, Randwick, Kur ring gai and Lane Cove councils. More information on rebates available to strata buildings from local councils are in this list of all rebates available to stratas here.
You may want to watch a video on Why to install solar.
Small scale technology certificates (STC's)
These are federal government financial incentive. They are usually quoted in the net price of a solar system by a CEC accredited solar installer.
They only apply to solar systems which are under 100kW in size but this will be the vast majority of solar systems which are installed on residential strata buildings. Few people realize that the prices of the STC's fluctuate daily and the quote you get from your solar installer should itemise the price of the STC's used to calculate the rebate. If you want to check the STC price used by the solar installer and the market price, to see if they are not shortchanging the strata scheme, the daily rate can be checked on the STC calculator here. The range that the STC's have traded in since inception of the incentive is between $17 and $39. When STC's are at $39 then the "rebate" for each kW of solar would reach $585. By law, they can't trade higher than $40 per STC. In addition to daily price fluctuations, the overall value of the STC's is decreasing in value each year up to the year 2030.
Large Scale Generation Certificates
Large Scale Generation Certificates apply to solar systems which are over 100kW in size. It will be rare to retrofit a solar system of over 100kW onto a residential strata complex. However, some new residential complexes have much larger solar systems planned. For example Ed. Square in Edmonson Park has a 2.5MW solar system (video here). Large scale generation certificates are paid out in tranches each year from installation until 2030. If you are doing a large system, every year that you wait will create opportunity cost in terms of large scale generation certificates.
South Australia
Virtual Power Plant (VPP) rebate is not yet available for residential strata schemes but the rebate may be extended to strata schemes in the future.
Victorian State Government "Solar Homes Package"
Strata Owner Occupiers who don't already have an individual solar system with a combined income of up to $180,000 and property valuation of up to $3m are eligible to apply for this on top of the federal STC's. From July 2020 the Solar Homes Package is for an additional rebate of up to $1,850 or 50% of the price of the solar system, whichever is lowest.
Solar Victoria runs the "Solar Banks" grants, which give up to $2,800 per apartment for solar which connects to private apartments meters to reduce the cost of living.
Australian Capital Territory
ACT has a "Solar Banks" rebate of 50% of the cost of solar which connects to private apartments meters to reduce the cost of living. This can be matched with a 50% loan from Brighte for a $0 down solar sharing solution.
New South Wales State Government
The NSW Liberal government has pledged to provide 300,000 homes with a combined income of up to $180,000 per annum, no interest loans over 10 years of up to $9,000 for a solar system and $14,000 for a solar-battery system. An individual apartment or townhouse in a strata scheme could apply for this. It is not available to Owners Corporations to apply for this scheme. In 2024, there is a possibility that the NSW government will offer say $30m of grant funding for installation of solar on residential strata buildings (similar to the $10m of grant funding which was allocated to EV charging grants in residential strata buildings in 2023).
A new battery rebate was launched on the 1st November 2024 and is different from direct battery rebates. It is part of the Peak Demand Reduction Scheme (PDRS) being run by the NSW government. It is only relevant to batteries where the battery size is between 2kWh and 28kWh. There is $0 rebate for batteries which are larger than 28kWh. The exact value of the rebate will fluctuate in a tradeable market similar to the NSW Energy Saving Scheme ESC certificates, except these are called Peak Demand Reduction Certificates (PRC's). Examples of batteries which are eligible are Tesla Powerwall 3, Tesla Powerwall 2, BYD, Energizer, Enphase, Genz, Goodwe, iStore, Powerplus, SolaX, Sungrow, Zenaji, SolarEdge, Sonnen, Eguana, Fimer, Soltaro, Sunpower, Varta, Bluetti, SigenStor and Lavo (Hydrogen). You also have to use a 'certified installer' and sign a nomination form and give this to the certified installer. The size of the rebate is dependent on the size of the battery and the postcode. For example, a same sized battery installed in Wagga Wagga will get a higher rebate than the same sized battery installed in the northshore of Sydney.
Typically there is a $1600-$2,400 rebate upfront on the battery.
Also, if the battery is connected to a Virtual Power Plant (VPP) you are also entitled to a rebate of $250 to $400. The VPP rebate can be claimed twice, but the timing of each claim must be 3 years apart.
www.energy.nsw.gov.au/households/rebates-grants-and-schemes/household-energy-saving-upgrades/install-battery
The NSW Government launched the Solar for Apartments (SoAR) Incentive on 28th February 2025 with $25m funding:
-50% co-funding capped at $150,000 per apartment block
-Minimum of 3 lots and no more than 55 lots
-Applies to individual solar systems, shared solar or embedded networks
-Stratas mustn’t have had solar installed in the last 10 years
-Payback needs to be under 10 years
-Common area meter can be connected to solar sharing but can’t consume over 40% of total solar generated
-Balance needs to be paid for by ALL owners on unit entitlements
-Not able to use power purchase agreement (PPA) solar finance
-Waterproofing under the solar system can be included
-Essential meterboard upgrades can be included
-Only for strata buildings, not for company title
-Not more than 30% of the solar generated can feed into the grid
-Doesn’t apply to batteries but you can apply for NSW Peak Demand Reduction Scheme for batteries which you want to incorporate
-Requires 3 quotations from solar installers
-Installs must be completed by March 2026 for successful applicants
-Any owner can register an expression of interest but will need the last annual financial statement and the strata insurance policy.
Watch our video overview on SoAR here and read an article on SoAR here. According to Prime Minister Albanese, only 3.5% of apartment buildings in NSW have solar, which was quoted from Wattblock's Electrify Strata project!
Queensland State Government
Body Corporates in queensland were able to access grants of $3,000 to purchase batteries or combined solar-battery systems but this program has been fully subscribed and is no longer offered.
Victorian State Government
A scheme jointly funded by the Victorian and Commonwealth governments just concluded a second round of grants, but no further rounds have been announced at this stage. On offer was up to $2,800 per household, or up to $140,000 per property for buildings of up to 50 apartments.
Northern Territory State Government
The federal and NT governments are backing a scheme that provides up to $7,500 per individual dwelling, to support up to 50% of the total installation costs of a shared solar system.
Local Government Subsidies
In NSW a number of local councils have offered an additional subsidy to strata buildings wanting to install solar. These include North Sydney, Waverley, Randwick, Kur ring gai and Lane Cove councils. More information on rebates available to strata buildings from local councils are in this list of all rebates available to stratas here.
You may want to watch a video on Why to install solar.
|
Solar for Strata Webinar
Join us walking through all the considerations strata schemes have to take on their solar journey. Watch on Youtube |