The price of STC’s play an important role in determining the deals that a solar retailer is able to offer their customers. Read on to learn more about what they are, and how we, and other solar retailers, calculate them to offer you better prices.
What are STCs?
The solar industry benefits from a government incentive called the ‘Renewable Energy Target’ (RET). Under the Small-scale Renewable Energy Scheme, households and businesses with solar power systems up to 100kW, receive Small-Scale Technology Certificates (STCs) for every megawatt hour of renewable energy generated or displaced by an accredited solar panel. These STCs carry monetary value, which is used by solar retailers in determining the price of your installation, effectively turning them into a discount on your systems overall price
These were set at their highest point when the scheme was introduced in 2011, to counteract the high price of solar energy at the time, and make it a more feasible choice for Australian residents. Overtime, in tandem with the cost of quality solar energy systems falling, the price of these STC’s has fallen as well, with less to compensate for, they are set to phase out in 2030.
But until then, homeowners can enjoy the discount these STC’s provide, reducing the cost of their systems.
How are STCs calculated?
The quantity of STCs your PV system entitles you to is calculated by taking into account:
1. The total size of your system
Number of panels x wattage of each panel.
2. The rating of the solar zone you reside in
Australia is divided into 4 solar zones.
Each zone has it's own rating used in determining the value of STC's:
If you are unsure which zone you reside in, you can download the list of postcode zone ratings here.
3. The number of years remaining until the scheme ends
So, if you install a 6.66 kW system (including a 5kW inverter and 18 x 370W solar panels) in Perth in 2021, you will receive 6.66 x 1.382 x 10 = 92.0412 STC’s.
You can easily simulate the number of STCs you’ll receive for your PV system using an online small generation unit calculator.
What is the value of an STC?
Like shares, STCs have a trading value, which fluctuates depending on supply and demand. Their price is capped at $40 but their median is $28, so that’s a good point to work from. We incorporate STC’s generated by systems we sell as point of sale discounts on the price of the system, so that you can enjoy the savings they provide immediately. Real-time STC market prices can be found online.
So, if you take $28 and multiply it by the 92.0412 SCT’s we determined a Perth-based homeowner would receive, you get a discount of $2,577.15. It’s discounts like this which allow us to offer our customers fantastic systems, such as this one from as little as $2,990.
If you would like to learn more about STC’s, you can read all about them on the Clean Energy Regulator website. If you’d like to see just how much solar could save you, give us a call on 1300 745 410, or by enquiring below.