A feed-in tariff (FIT) is a payment you might receive for any solar excess electricity your solar energy system generates that can be sent back to the grid. You'd receive this as a credit on your bill from your electricity provider. It is a rate set per kilowatt hour (kWh) by each state government.
When you don't use all the solar energy you've generated, the excess electricity feeds back to the grid.
There are two financial incentives available for solar power system purchases. The scheme applicable to your business will depend on your requirements.
Small-scale technology certificates (STCs) are a discount that's applied at the point of sale for solar power systems purchased outright. These are only for Solar PV panel systems that have a capacity up to 100kWs. The capacity of your solar system and the location of the installation will determine the number of certificates generated for you. We’ll generate and facilitate the certificates as part of the installation process, so you won’t have to worry about a thing.
If you’re looking to install a larger commercial solar system, then you could benefit from the financial incentives offered by the Large-Scale Renewable Energy Target and large-scale generation certificates (LGCs). The incentives apply to any solar power system greater than 100kWs, and the amount of LGCs you generate will depend on the capacity of your solar system and the location of its installation.
Your business may be eligible to use deduction against the cost of buying a solar system.
More information is available on the ATO website.
Most businesses consume the majority of their energy during the day making them the perfect candidate for solar. Utilising the unused space on your roof will bring the following benefits: