I’ve got good new and bad news.
The good news for those of you who don’t currently qualify for the $8,000 solar rebate from the Federal Government because your household income is above $100,000, is that from July 1 this year the $100,000 means test is to be scrapped.
The bad news is that the new scheme is horribly complex, and it is impossible to predict exactly how much the rebate will be as the value of it will be tied in with the Renewable Energy Target Scheme and will therefore vary.
What is certain is that households earning less than $100,000 will also get less assistance under the new scheme.
For example, under the current scheme, a household earning less than $100,000 can install a 1kW system and receive a $8,000 from the federal government.
Under the new scheme starting in July 1, the same household will receive as little as $4,500. To receive the maximum rebate, the household will have to install a much more expensive 1.5kW system, in which case a rebate of approximately $7,500 will apply.
Households earning more than $100,000 will be the big winners, going from receiving no rebate under the current means test, to receiving the same rebate as lower income households as described above.
So what should YOU do?
If your household income (total income less allowable tax deductions) is less than $100,000, then you should move quickly to sign-up for panels before July 1. If you wait until after July 1, you will lose up to $3,500 in rebates compare to the current system.
If your household income is above $100,000, then you are probably better off waiting until July 1 to sign up for your system.
