The Small-scale Technology Certificate (STC) rebate scheme plays a crucial role in reducing the upfront costs of solar panel installations in Australia. If you’re considering investing in solar energy, understanding how the STC scheme works, its pricing, and the calculation process can help you make an informed decision. This guide breaks down the essentials of the STC rebate scheme, offering you the latest insights and practical details.
What are STC Rebates?
The STC rebate is a government initiative designed to incentivise the adoption of renewable energy by reducing the cost of solar panels, solar batteries, and solar water heaters. These certificates are a form of currency, each representing one megawatt-hour (MWh) of renewable electricity that the system is expected to generate over its lifetime.
What is the STC Scheme in Australia?
The STC scheme is part of the federal Renewable Energy Target (RET), which aims to cut carbon emissions and boost the adoption of clean energy. Under this program, households and businesses installing eligible solar systems can earn STCs, which they can trade in exchange for financial rebates. Paired with programs like Solar Rebate NSW, these incentives further reduce the cost of transitioning to renewable energy.
STC Rebate Eligibility
To qualify for the STC rebate, your solar system must have a capacity of up to 100kW and be installed by a Clean Energy Council (CEC) accredited installer using approved components. The property must be located in Australia, and eligibility is influenced by the system’s size, location (zone rating), and installation date. The deeming period, running until 2030, determines the number of STCs issued, which decreases annually.
Eligible systems include solar panels, solar water heaters, and paired solar batteries. Most installers handle the registration process with the Clean Energy Regulator. Meeting these requirements ensures access to significant savings under the STC scheme.
How Do STCs Work?
The process of earning and redeeming STCs is straightforward:
- When you install a solar system, STCs are issued based on the system’s size and location.
- These certificates can be sold to electricity retailers, who are legally required to purchase them under the RET.
- The value of your STCs is subtracted from the upfront cost of your solar system by your installer, resulting in immediate savings.
How Do You Calculate STCs for Solar Rebates?
Calculating STCs is based on three factors:
- System Size: Larger systems generate more STCs.
- Zone Rating: Australia is divided into zones based on solar radiation; higher sunlight areas generate more certificates.
- Deeming Period: The number of years the system is expected to produce energy, currently set until 2030, affects the total STCs.
The formula is:
STCs = System Size (kW) × Zone Rating × Deeming Period (Years) = Total STCs
For example, a 6.6kW system in Zone 3 with a 7-year deeming period would generate:
STCs = 6.6 × 1.382 × 7 = 63.86 (rounded down to 63 STCs)
What is an STC Currently Worth?
The value of STCs fluctuates based on market demand and supply. As of now, the average market price for an STC is around $38 to $40, but this can vary. Installers typically factor this into your system’s quote, so you don’t have to manage the sale yourself.
How Much Can You Save with the STC Scheme?
The exact savings from the STC rebate scheme depend on your system’s size and location. Here’s an estimate for a 6.6kW solar system:
- Zone 1 (High solar exposure): ~90 STCs × $38 = $3,420
- Zone 2 (Moderate solar exposure): ~77 STCs × $38 = $2,926
- Zone 3 (Lower solar exposure): ~63 STCs × $38 = $2,394
This rebate significantly lowers the upfront cost of your solar panel system, making it accessible to more Australians.
STC Rebates vs Solar Rebates
While STC rebates and state-based solar rebates are often confused, they are distinct.
- STC Rebates: A federal incentive based on renewable energy output.
- Solar Rebates: Additional state-specific schemes, such as the Victorian Solar Homes Program, which provide extra savings on installation.
Including both rebates can lead to substantial cost reductions on your solar system.
Key Details of the STC Scheme
- Eligibility: To qualify, your solar system must meet specific size criteria (up to 100kW) and installation requirements.
- Expiry: The deeming period reduces each year, meaning the number of STCs you can earn will decrease annually until the program ends in 2030.
- Trading STCs: While most homeowners let installers manage the STC sale, you can choose to trade them independently.
Benefits of the STC Rebate Scheme
- Cost Savings: The rebate offsets a significant portion of solar installation costs.
- Environmental Impact: Encourages a shift to renewable energy, reducing carbon emissions.
Long-Term Returns: Lower electricity bills and additional benefits from feed-in tariffs make solar a financially wise investment.
Why Choose Solar Panels with STC Rebates?
The STC rebate scheme not only makes solar systems more affordable but also ensures a faster return on investment. For those considering solar batteries, pairing them with panels maximises energy efficiency and savings.
By taking advantage of the STC rebate scheme, Australians can transition to renewable energy with reduced financial burden while contributing to a greener future.
Conclusion
The STC rebate scheme is a cornerstone of Australia’s push for renewable energy adoption. Understanding the details of the scheme, including STC values, calculations, and benefits, ensures that you make the most of this opportunity. With solar energy offering both financial and environmental advantages, now is the perfect time to invest in a solar system.
For more information, contact Greenlight Solar and let us guide you through your solar journey.
