Incentives & Rebates

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Incentives and Rebates

Both the Federal and State Governments offer a number of financial support options to encourage businesses to make the switch to energy saving solutions. The support is typically a grant, a rebate, energy certificates or a financial loan. The financial subsidies can vary depending on a number of factors such as the location, size, intended use and type of business applying.
The most common financial support available to businesses are:

Federal subsidies:

The Federal Government provides incentives for the installation of different sized solar PV (photovoltaic) systems. STCs are financial incentives to eligible individuals and businesses who install solar power systems less than 100kW. STCs are issued at the time of purchase and are calculated based on the system size, location, and future power expectations of the system until 2030. Approved Solar Retailers, like Allset Energy, can trade these on the client’s behalf and apply a discount to the full system value, reducing the client’s upfront cost.

Small-Scale Technology Certificates (STC):

Also provided by the Federal Government, organisation with systems over 100kW can claim LGCs for the electricity generated by solar PV. Unlike STCs, the LGC financial benefit is calculated and paid annually in arrears until the Renewable Energy Target end date, currently 2023. The legislated demand for LGCs post 2023 is not yet confirmed by the Clean Energy Regulator and as such LGCs have an uncertain future value. There is, however, continued demand for these certificates and additional potential upside to LGCs if Australia commits to lower carbon emissions targets.

Large-Scale Generation Certificates (LGC):

Businesses with annual turnover of less than $50 million will have access to a bonus 20 per cent tax deduction for eligible assets supporting electrification and more efficient use of energy, from 1 July 2023 until 30 June 2024. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.This Bill is currently before Parliament.

Small Business Energy Incentives:

Small businesses with annual turnover of less than $10 million will be able to immediately deduct eligible assets costing less than $20,000 from 1 July 2023 until 30 June 2024.This Bill is currently before Parliament.

Small Business Instant Asset Write-Off:

State subsidies:

Unlike LGCs, VEECs are calculated based on actual site consumption and demonstrated energy savings. The benefit is calculated for the first ten years of a system’s lifetime (based on the first year of actual operation) and can be paid out after the first year. As this calculation method favours consumption over generation, they can offer better financial returns than LGCs for medium sized systems (depending on certificate values at the time). VEECs are managed by the Victorian Energy Upgrades program and awarded based on set criteria.

Victorian Energy Efficiency Certificates (VEECs) (Victoria only):

There are different qualification criteria for each, and other financial support options and grants may also be available to your business. Where possible, Allset Energy will work collaboratively with the client to identify the highest subsidy value for the client and assist with accessing these financial benefits as part of our consultation and / or ongoing maintenance services.

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