The SRES creates financial incentive for owners to install small scale solar installations under 100kW. The SRES works by issuing Small-scale Technology Certificated (STC's) for these installations. The number of STC's issued is based on how much electricity the system will generate until 2031. One STC is equivalent to one megawatt-hour of electricity.

For example, a 100kW system (approx 300-400 panels) will produce around 1,934MWh worth of electricity until 2031, meaning your business would currently recieve 1,934 STC's.

STC's are an electronic form of currency that can be purchased, sold and traded on an open market, often to recover a portion of the cost of purchasing a system. (It's common practice to allocate the STC's to the system provider in exchange for a discount on the purchase price). Their value fluctuates with supply and demand.

For example, if the value of an STC is $30, you'd receive a $58,000 discount off the cost of a 100kW system.

In order to create LGC's the solar system needs to become an accredited power station'. The first step would involve the system owner becoming a 'registered person' in the REC Registry. Once this has been completed the system owner can apply for power station accreditation.

Following successful accreditation, LGC's can be created in the REC registry where, once validated they can be made available for purchase. LGC's are sold through the open LGC market, where the price will vary according to demand.

New Sky Energy Solutions are able to assist and manage the accrediation and sales process for both STC's and LGC's.

Did you know, you may be able to claim a deduction in this financial year tax return for assists you bought

using the instant asset write-off, you can claim a deduction for each asset that costs less than the threshold that applied when the asset was first used or installed ready for use.

Assests that cost more than the relevant threshold can't be immediately deducted. You can deduct them over time using the small business pool.

Remember, registered tax agents can help with your tax.

You may be eligible for up to $3500 tax relief if you install a battery system at your home.

More information is available on the ATO website & ATO Small business newsroom.

You're eligible if:

• You have an ABN

• At least 20 square meters of roof space

• Own the building or have your landlord’s consent

Looking to expand your existing solar system? That’s fine. You’re still eligible for government grants to upgrade your system even if you’ve already claimed in the past.

The LRET creates a financial incentive for large scale renewable energy installations such as Sola PV Sytems, above 100kW. After the system has undergone an accreditation process the owners can generate Large-Scale Generation Certificates (LGC's)

One LGC can be created by every megawatt-hour of electricity generated. Like STC's, LGC's can be purchased, sold and traded on an open market and their value fluctuates according to supply and demand.

The key difference between STC's and LGC's is that LGC's are produced on an on-going basis (once the system has been installed, is producing electricity, and has undergone the accreditation process) as opposed to STC's which are created upfront.

For example, a 200kW system would produce an average solar output of 320,000kWh, or 320MWh. This means they would produce 320 LGCS.

If LGC's trade for around $80, this would mean at the that value, a 200kW system would recieve around $25,600 per year in government incentives.

There is a $3500 rebate avavilble for eligible businesses. Ask us how to apply, or check out the solar vic website to see if you qualify. www.solarvic.gov.au