Should I put solar panels on my rental property?

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The solar rebate in Australia is available for all residential and commercial buildings. The rebate is called Small-scale Technology Certificates (STCs). It is given to the physical property address and can be accessed multiple times for the same address.

The size of the rebate is linked to the size of the solar system and varies by location based on the amount of renewable energy the system will generate. Solar equipment must be Clean Energy Council (CEC) registered to qualify for the rebate, and the installer must have appropriate CEC qualifications.

The average rebate for a 6.6kW system in 2022 is around $3200 for Sydney and similar for most parts of Australia.

Should I get solar panels for my rental property?

The short answer is YES, you should put solar panels on your rental property. This is because the solar power system rebate is given to the physical property address, not the individual. Therefore it also does not matter if the person living on the property is an owner/occupier or a renter.

Currently, one key rebate is offered for solar PV systems in Australia. They are called Small-scale Technology Certificates (STCs).

If you own several properties, you can get a solar rebate for all your properties. If they fall into the criteria as spelt out by the Federal Government.

One of the key criteria is that the equipment you use is Clean Energy Council (CEC) registered. This applies to panels and inverters. The installer must have the right qualifications to design and install solar energy systems.

The solar installation companies are well versed in all aspects of accessing the rebate for solar systems and batteries. So should they attract a rebate in your area?

Please note solar rebates are currently managed Federally via the Clean Energy Regulator (CER). At the same time, battery rebates are made available via some limited State initiatives.

Your installer will only recommend equipment that is CEC-approved and therefore qualifies for the available rebate.

solar system on rental property purchased with rebate help
Solar rebates can provide financial assistance after the installation

Limitations on the rebate

If you buy a house with an old solar system, it received a discount ten years ago. This does not mean that you can not replace the system and get the rebate again. Rebates are not limited to being given to one property address only once. It also seems that the CER does not have the automatic means to check if these premises received a rebate previously.

The size of the rebate is linked to the size of the solar system. This means the bigger the PV system you think of purchasing, the bigger the rebate support. The rebate also varies in different parts of Australia. It is also linked to the amount of renewable energy this particular system will generate in its installed area.

On average, the rebate for a 6.6kW system in 2022 is around $3200. For a place like Sydney and similar to most parts of Australia.

Commercial properties

Solar energy adoption isn’t limited to homes; commercial properties can also harness the benefits of rebates. For solar systems with a capacity of 100 kilowatts (KW) or less, commercial properties enjoy the same Small-scale Technology Certificate (STC) rebate as residential areas.

However, for larger solar installations over 100 KW for businesses, there are more financial incentives available. Landlords can benefit from LGCs, which provide a special rebate spread out over multiple years.

This emerging trend is gaining traction among commercial property landlords who are progressively installing solar solutions into their buildings. These landlords improve their rental properties to make them more appealing to potential tenants and also help with sustainable energy practices. A dual benefit is achieved by supporting green initiatives while increasing the beauty of commercial spaces.

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