The time to contract for solar energy is now. Rebates for installations in Victoria will reduce for solar installations completed after January 2022.
There has always been a compelling argument in favour of installing solar panels sooner rather than later: the sooner you get your system installed, the sooner the price of your energy bill will drop. Your carbon emissions are also reduced immediately.
Also in the mix is the volatile value of the various Government rebates available for your project. There are various state and federal rebate and subsidy programs that may be available to support your solar projects. The specific issue of timing differs from state, but the theme is the same: the longer you wait, the lower the value of the rebates available to support your project.
The Victorian Energy Efficiency Certificate (VEEC) scheme, which provides substantial funding for solar installations, will reduce for installs completed after January 2022.
This presents Victorian customers with a once-in-a-decade opportunity to implement large solar systems on their roof (or ground) this year. Due to the skyrocketing price of VEECs, we are now seeing the payback on a large solar system (>500 kW) of 3-4 years.
The VEEC rebate drops by 20% on 31 Jan 2022. This reset is expected to decrease the net payback on projects installed after January next year by up to 10 per cent. To make the most of the rebates, you must contract now to complete your installation before the reset comes into effect.
Beyond Victoria, the Federal Government rebate supports solar installs below 100KW, the upfront Small-scale Technology Certificate (STC), and the certificate scheme supporting installations greater than 100KW and the Large Scale Generation Certificate (LGC) will be one year closer to their sunset date of 2030. The way both of these schemes work is that your project is rewarded for its deemed or actual solar production over the scheme's life so as each calendar year ticks over and the reward period is shortened, the rebate opportunity is reduced.
Other incentives to move now to contract include the opportunity businesses now enjoy to claim solar as a tax deduction. Where a small business is operating remotely, a solar system under $20,000 can be claimed under the instant asset write-off scheme.
The Australian Energy Regulator (AER) released its 2021 State of the Market report earlier this month. Observing that in 2020 more than 2500MW of behind-the-meter solar capacity was added to the market. A statistic that really indicates scale to this number is that in 2021, 24% of energy consumers across the National Energy Market have installed behind-the-meter solar.
This growth in the market is projected to continue on this steep trajectory, even as the rebates roll off. According to the AER, there is an estimated between 13 and 24 GW of behind-the-meter solar capacity forecast to be installed over the next 20 years.
It's easy to see why there would be such a growth in the use of solar. Energy Action has been in the commercial and industrial solar market for the past decade, and we have seen the market mature considerably. Incremental advances in equipment performance, coupled with the emergence of a highly experienced body of installers with a legacy of high-quality projects, means that procurement can now match the right kind of installer and installation for the right type of situation.
With current COVID-19 restrictions adding extra complexity to the task of scheduling a solar install, the reality is that a solar install before the end of January is a tough ask. In addition to the challenge to sort through the myriad of offers you are probably receiving from installers, technical and quality issues need to be addressed.
One of the easiest ways on the market to make the transition to solar power is via Energy Action's Solar Auction Platform.
Our online reverse auction process for solar is currently achieving reductions of 16% from the first bid to the last bid. From the highest initial offer to the final accepted offer, the whole process has led to an overall reduction of 42% in cost for the participant.
All we need to get started is a copy of a recent bill, your meter information and available rooftop configuration to determine your requirements. We can provide initial offers for your acceptance within a week from Qualified suppliers and then help you drive the margin down through our Solar Auction process.
It's crucial to note solar installation projects take up to four months to build, so now is the time to assess the savings solar will deliver for your site and then procure with our Solar Auction process.
And for your grid-supplied energy, Energy Action's Green Auctions provide businesses with a means to enjoy the benefits of a firm price renewable energy supply to meet net zero obligations, where multiple renewable energy retailers competitively bid for a business' contract.
To find out more about these options, contact Energy Action today on 1300 964 589, or get in touch with your account manager.