Understanding STCs and the Solar Rebate
How are STC’s calculated?
What’s the limit for receiving STC’s?
Is the Solar rebate ending this year?
Our team at Gardel Electrical get these types of questions from customers every week. We understand it’s a pretty complicated system, so we’ve written this blog to help you understand the facts behind STCs (Small-scale Technology Certificates) and the Solar Rebate.
What are STCs?
STC’s stand for Small-scale Technology Certificates. Put simply, STC’s are a Government iniative, designed to incentivise Australians to invest in certain renewable energy systems. They achieve this by offering to pay for a portion of the purchase and installation costs of the system.
What systems are eligible under the Small-scale Renewable Energy Scheme?
solar photovoltaic (PV) systems up to 100kW,
small-scale wind systems,
small-scale hydro systems,
solar water heaters, and
air source heat pumps.
STC’s for Solar PV systems.
STCs for these systems are calculated based on these three factors:
the size of a solar system (kW),
the zone rating of the postcode where the system is installed (calculate the zone rating of your postcode here), and
the deeming period (number of years remaining until the end of 2030, when the deeming period ends).
It’s a bit complicated, so here’s an example of how this all works:
In August 2020, a standard 6.6kW solar photovoltaic system is installed on a home in South East Queensland. In 2020 this particular system will generate 100 STC’s, worth approximately around $35 each. The STCs for this 6.6kW system were calculated by following the principle mentioned above.
The system size is 6.6kW.
South East Queensland has a zone rating equal to 1.382.
In 2020, there are 11 years left on the deeming period.
In short: 6.6 x 1.382 x 11 = 100 STC’s
How would the number of STCs change for this system, if it were installed in 2021?
If this same system were installed in 2021, it would generate 91.2STC’s. These could be worth anything between $20 to $40 each, depending on factors such as supply and demand.
The system size would still be 6.6kW.
South East Queensland will (most likely) still have a zone rating equal to 1.382.
In 2021, there will be 10 years left on the deeming period.
In short: 6.6 x 1.382 x 10 = 91 STC’s (actually 91.212 but STC’s are always rounded down)
Common Misunderstandings around STC’s
The STC rebate will be available until 2030, although the number of STC’s generated from the each solar system will reduce each year.
The STC price fluctuated depending on supply and demand, having reached a low of $21 in July 2011 and a high (maximum) of $40 in 2016/17.
The customer will not always be offered the full price of STC’s as there are considerations such as generation and trading costs to consider.
The STC rebate applies to system prices, but there are further incentives in feed trariffs when the solar system generates more electricity that the household consumer.
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Gardel Electrical & Solar offers top-quality solar solutions with proven performance, backed by industry-leading warranties and dedicated after-sales support. After more than 11 years of operation in Queensland, Gardel Electrical & Solar is one of the most established and experienced solar companies.
Our expert team of electrical engineers, project managers, designers, and CEC-accredited electricians have extensive experience in designing and installing residential and commercial solar panels, ensuring maximum efficiency and long-term performance. With our cutting-edge technology and reliable service, you can enjoy significant energy savings while contributing to a greener future. Gardel Electrical & Solar offer an industry-leading 10-year workmanship warranty and the manufacturer’s 25-year guarantee, offering both value and peace of mind.
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