We’ve got some of the best conditions in the world to harness the power of the sun, and the Australian government is incentivising the uptake. As more homeowners and businesses make the switch to solar, they can take advantage of the various incentives and rebates on offer. One of the key incentives for solar system owners is the Small-scale Technology Certificates (STCs) program. Get to know how STCs work, their benefits and how they contribute to making solar more affordable for everyday Australians.
Get to know Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STCs) are an Australian government incentive designed to increase the adoption of solar power and other renewable energy systems. In their simplest form, STCs are a financial incentive that can be provided to home owners before your eligible solar system has been installed. STCs are based on the total amount of PV capacity in kilo-Watts (kW) – the larger your system, the larger the incentive! Homeowners and businesses can trade STCs and sell them to electricity retailers or brokers, who use them to meet their own renewable energy targets. The size and location of your solar system both impact the number of STCs generated. This is determined by the projected amount of energy your solar system is expected to make over its lifetime. You can do a little more research into STCs via the Clean Energy Regulator here.
How STCs are created and calculated
As we touched on, the number of STCs generated by a solar system is determined by a few factors. These include the solar systems’ capacity (size), location, and the period of which the STCs are created. The creation of STCs is based on the projected amount of energy that your solar system will make over its lifetime. The calculation is completed by the Clean Energy Regulator for the Small-scale Renewable Energy Scheme (SRES).
The benefits of STCS
STCs make solar systems more affordable
If you’re looking for an upfront discount on the cost of your solar system installation, this one is for you. Because, solar system owners can assign their STCs to registered retailers or brokers in exchange for a financial benefit. The value of STCs is driven by the market so they will vary over time. However in selling them, they make solar systems more affordable and attainable.
STCs can reduce the payback period for solar system investments
With the installation cost of a solar system reduced, homeowners and businesses are able to reduce their payback period. This helps to make solar a more financially viable choice in the long run, too.
STCs support renewable energy
By having a market for STCs to trade within, the program encourages the adoption of renewable energy which includes solar systems. This adoption supports Australia’s transition to a cleaner and more sustainable energy future by reducing reliance on fossil fuels, decreasing greenhouse gas emissions and contributing to Australia’s renewable energy targets.
How to access STCs
Solar systems must meet specific installation requirements and guidelines set by the Clean Energy Regulator. This includes using approved materials (solar panels) and qualified installers. Look for solar companies that are registered under the Small-scale Renewable Energy Scheme (SRES) and are able to assist with STC compliance and creation.
So, if you’re looking for significant financial support to install your solar system, STCs are a great option. By participating in the STC market, you can offset the upfront cost of installation, shorten the payback period, and contribute to a more sustainable future.
How to get started on your solar journey
If you’d like to know more about STCs and other incentives, call us on 1300 4 SOLAR. We’re accredited solar specialists and our goal is to help you maximise your solar investment.
Always conduct your own up-to-date research into rebates and incentives available in your area.