Declare Sun Tax Credit and Incentives

Declare Sun Tax Credit and Incentives

Australia encourages the use of renewable energy systems and goods by offering a range of solar tax credits and incentives. We’ll outline how to apply for each tax credit and incentive that is offered here. 

Small-scale Renewable Energy Scheme (SRES)

SRES is a government program that empowers households and small businesses to install solar systems. The incentives are claimable through Small-scale Technology Certificates (STCs) under the SRES. Homeowners and small business owners receive 

STCs based on the expected energy output of the solar system. Therefore, the number of STCs you receive varies based on system size and location. 

The process for STCs: 

• Install a solar system eligible under the SRES program
• Working with a registered solar installer that is accredited by Solar Accreditation Australia (SAA)
• Following the solar system installation, your installer will create STCs on your behalf via the STC Registry. Keep in mind that this can take a few days to a week depending on your installer’s workload and other required approvals. 
• Once submitted, the STC application must be validated by the Clean Energy Regulator (CER) that can take between 4 and 6 weeks. Your installer can provide you with updates. 

How to claim your STCs:

You can’t claim STCs physically because these are electronic certificates created within the STC Registry. To claim your STC benefit, you have several options: 

• Sell them: If you choose to sell them, your installer might offer them a discounted price upfront. This will reduce the solar system installation cost. On the other hand, you can work with a REC agent to sell them on the open market for their current market value. 
• Assign them: This will be handled by your installer and deduct the STC value from your system cost upfront. That said, you won’t be receiving any more money after this transaction. 

Feed-in Tariffs (FiTs)

There is really no way to actively claim your FiT, unlike a tax credit. When you have a solar system installed on your property, your energy retailer will install an export meter to track the electricity you send back to the grid. From there, your energy retailer will calculate the amount of exported electricity and credit your account based on the agreed-upon FiT rate. 

The FiT is built into your energy bill, which means there’s no need for you to submit any additional paperwork or forms to claim it. This is why it’s crucial you compare FiT rates and you can switch to a retailer with a higher FiT if it benefits you. 

Instant Asset Write-Off

This is only for small businesses with a turnover of less than $50 million in the previous income year. The solar system installed should be installed and ready for use between 1 July of the current income year and 30 June of the following income year. 

The claim process: 

This doesn’t involve a separate claim process. Here’s what you should do: 

• When filing your business tax return, you can deduct the full cost of the solar system from your taxable income for that year. 

Make sure all relevant documents related to your solar system purchase and installation are ready should the Australian Taxation Office (ATO) have questions. 

Important documents to keep: 

• Tax invoice or receipt 
• Evidence of the solar system’s installation date
• Any information outlining the functionality and capacity of the solar system

South Australia (SA)

The city of Adelaide offers Sustainable Incentives Scheme (SIS) for various sustainable initiatives. Here are ways to claim your incentive: 

• Check your eligibility: Make sure you meet the scheme’s criteria. 
• Select an eligible project: Select a project that qualifies for the scheme. 
• Apply for the incentive: Application forms for each project/scheme can be found on the City of Adelaide website. Fill out the form with information on the project, the associated costs, and the anticipated energy savings. You may also be required to provide supporting documentation.
• Application assessment: The government will review your application to confirm your eligibility and the specifics of the project.
• Claim the rebate: After the project is finished, you must send in the necessary paperwork to get your rebate.

Remember that the incentive amount will vary depending on the project and eligibility criteria. Also, consider the specific deadlines for applications and carefully review the terms and conditions. 

Energy Matters is a trusted solar quotes provider. We can connect you to our network of trusted solar installers in SA. Get your FREE quotes now. 

New South Wales (NSW) 

NSW currently has a Peak Demand Reduction Scheme (PDRS). However, there is no way to claim the incentives directly. Instead, it works by creating a market for reducing peak electricity demand.

You need to work with an Accredited Certificate Provider (ACP) to verify your energy-saving actions and create Peak Reduction Certificates (PRCs). ACPs represent your contribution to reducing peak demand. Your ACP will help you sell the PRCs to energy retailers or other parties. The money that you will get from it will provide you with a financial incentive for your energy-saving efforts. 

Australian Capital Territory (ACT)

The ACT has the Sustainable Household Scheme, an incentive through interest-free loans for eligible households to install energy-efficient products. To claim this incentive, here are the steps: 

• Check your eligibility: Make sure you meet the scheme’s income and residency requirements. 
• Choose eligible products: Choose products that qualify for the scheme, such as battery storage, solar panels, insulation, or electric vehicles. 
• Attend a workshop: You will be required to attend a mandatory one-hour workshop to learn about energy efficiency. 
• Apply for the loan: Accomplish the loan application via Brighte. You will be required to provide identification, proof of income, and evidence of ownership of real estate.
• Install the product: You can move on with the installation or purchase as soon as your loan is authorised. 

Victoria (VIC)

The Solar Homes Program is provided by the Victorian Government. In addition to interest-free loans, hot water rebates, and solar battery loans, it offers solar PV rebates. In order to be eligible for this incentive, you must first confirm that you are a solar retailer who is registered with the Victorian Government. You can then take the following actions:

• Apply for the rebate: To apply for the rebate, go to the Solar Homes website and fill out the online application. Give specifics about your solar system, home, and personal data.
• Install your solar system: The installation may now be carried out.
• Claim the rebate: After the installation is finished, you must provide the required paperwork, such as invoices and installation proof, in order to get your refund.

There’s a high demand for this incentive, which is why you need to apply for the rebate as soon as possible once you get a quote. Also, you need to ensure you understand the terms of the rebate. 

Queensland (QLD)

The QLD Government has the Queensland Zero Emission Vehicle (ZEV) rebate. To claim this, here are the steps: 

• Apply for the rebate: Complete the online application form via the QLD Government’s website. You will need to provide your vehicle details, proof of purchase, and personal information. 
• Provide supporting documentation: Proof of residency, vehicle registration, income, etc., are some of the required documents you must submit. 
• Receive the rebate: Once your application is approved, the rebate will be processed and you’ll get your funds. 

With these solar tax credits and incentives, it’s clear that the Australian government recognises the value of solar power for a sustainable energy future. Knowing how to claim them will allow Aussies to make better decisions in investing in renewable energy and potentially get significant financial rewards. 

Energy Matters has been in the solar industry since 2005 and has helped over 40,000 Australian households in their journey to energy independence.

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