STC program stands for Small – scale Technology certificates which is an initiative by the government to motivate people to switch to solar. It provides financial incentives to the customer who is purchasing solar power systems or solar panels. The value is given in the form of a dollar and is later deducted from the cost of the solar system. The value may differ depending on the market conditions and other factors.
What do you understand about the STC Program?
The STC program basically states that every megawatt-hour your system generates is eligible to get Renewable Energy Certificates (RECs). There are two types of Renewable Energy Certificates: Small-scale technology certificates and Large-scale energy certificates and both are applicable for residential solar installations.
The benefit of this program is that you can get a certain amount of discounts while purchasing the solar power system from any recognized and reputed solar installer. They will provide this discount in the form of the STC value mentioned in your solar quote. You don’t have to bother about the process of selling or registering STCs as your installer will make it easier for you and do everything for you.
Solar rebate Reduces Upfront Cost
If you are planning to buy a solar energy system now, you will definitely get a subsidy from the government for your system installation. This subsidy will help in reducing the cost of the solar system which will be applied at the point of sale.
One of the most important points to be kept in mind is that the solar rebates reduce one fifteenth every year depending on the current legislation in power. This reduction started from the year 2017 and it will reduce gradually till the year 2032 when the reduction reaches zero.
It works on a very simple formula if the demand increases for the solar panels then the rebate value will decrease along with the STC price. The maximum value of STC set by the government law is $40 and the STC may vary between $0 to $40.
Different Criteria for Claiming the Financial Incentive
Most solar system owners assign their own agents to create their STCs. But you can also trade STCs by yourself by following just a few simple steps:
- Firstly, determine the eligibility of the solar power system or other small-scale renewable energy systems to be installed at your home.
- Calculate the total number of STCs to claim for your system installed.
- Obtain all the necessary information and complete the proper compliance paperwork.
- Create an account in the REC registry that includes verifying your identity and an assessment of a fit and proper person for the installation.
- Creating STCs in the REC Registry within 12 months of the installation date is important.
- Wait for the Clean Energy Regulator to validate all the certificates.
- Find a suitable buyer for the STCs trade or place them in the STC clearing house queue for sale and wait for it.
How to determine the STC Rebate?
Currently, the value of the solar rebate as per STC is about $38 which converts into a solar rebate amounting to $525 per KW installed. The STCs are always traded in the open market so it is exposed by the market fluctuations as well. You can easily get to know the STC rebate rates in the market and other information also.
How Does the Solar Rebate Work?
STCs work in a very systematic way as they are issued along with the eligible solar system and solar panels. The values are generated in form of dollars and can be redeemed as they get deducted from the cost of the solar system while purchasing the solar system. Most of the accredited solar installers make it easier and hassle-free for you to register and sell the STCs. They will provide point-of-sale discounts depending on your STCs.
You can also assign this to your installing agency who will completely do the registration processes on your behalf.
The amount you can get from the STC program is based on 3 factors:
- The dollar value of STC
- Zoning criteria: Australia is divided into separate zones depending on how much solar energy can be generated by the panels in the given area. You can also check your zone by using the postal code of your area.
Each zone in Australia has a particular rating number which is used for the calculation of the STCs number that the system is eligible for.
Zone 1 – 1.622 rating
Zone 2 – 1.536 rating
Zone 3 – 1.382 rating
Zone 4 – 1.185 rating
- The deeming period: Since the solar rebate is gradually reducing by one-fifteenth every year till it gets completely zero, so the deeming period will also reduce every year.
Why Should You Get Solar Quotes Sooner?
It is well known that the value of solar rebates varies depending on the current market prices of STCs. So if the demand for solar panel installation increases, the STCs will be credited more. As the supply of STC increases, then it will result in decreasing the demand therefore the STC price and the subsidy will be reduced.
If the demand for solar panels increases too much, then that will cause the STC price to drop. So this indicates that if you get quotes for solar right now, you will get the rebate value depending on the current STC price.
The renewable energy certificates are introduced by the government to attract the citizens to choose renewable energy systems and contribute to reducing carbon footprints. They also have an option to buy the right to other people’s energy systems in the form of RECs. The Small-scale Technology Certificate is a type of REC and its STC value can be redeemed in the dollar amount. Mostly the installers take the responsibility to trade the STCs for you.