Rebates and Incentives Available for Businesses
Did you know there are many incentives and rebates available to businesses interested in installing solar PV systems and/or upgrading their lights to LED? Is it so confusing and complicated that you are unable to make an informed decision?
There are:
- Federal government incentives
- State government incentives
- Electricity distributor incentives
Federal government incentives for solar include STC’s (small scale technology certificates for solar systems under 100kW) and LGC’s (large scale generation certificates for solar systems over 100kW). Incentives available depend on the value of the certificates at the time and the value of the certificates depend on market demand. Every new solar system that gets installed should qualify for either STC’s or LGC’s.
State government incentives for upgrades to LED lighting include the Energy Savings Scheme (ESS) in NSW and the Victorian Energy Upgrade (VEU) scheme in Victoria. Like STC’s and LGC’s, certificates issued through these schemes (ESC’s or VEEC’s) for LED lighting upgrades, have a value that depends on market demand. Currently the value of ESC’s and VEEC’s are at an all time high and in some instances, LED lighting upgrades can be free or heavily discounted.
Adding to these incentives, there are now some electricity distributor incentives.
Distributors of electricity are currently under pressure from business and industrial demand, as well as generation capacity.
One distributor, Ausgrid, is looking at ways to encourage customers to take up renewable energy and efficiency measures, such as installing solar systems and lighting upgrades, to reduce demand from the grid.
Ausgrid have introduced a program called Power2U, where generous incentives (in certain postcodes around Sydney only) for solar and LED lighting upgrades are provided over and above government incentives available.
If you are ready to install solar or upgrade your lights, you could be eligible to receive some, or all, of these incentives and, as a result, your installation may be free or heavily discounted! Excitingly, retail outlets qualify. Incentives and/or rebates can reduce your capital or operational cost and payback period together with increasing savings (more money in your pocket) and ROI.
If you don’t have the capital to pay for installing these products, you could look at different finance options available that provide cash flow positive solutions from day 1.
One popular finance option obtained through local councils is called Building Upgrade Finance (BUF) or Energy Upgrade Finance (EUF). Keep an eye out for an article on this in a future issue of Unwrap.
Ben Wright, Chief Operating Officer, Cherry Energy Solutions
