In’s and Out’s Of STC’s – Gaining Credit For Installing Solar Power

STC's Article

What Are STC’s ?

When you install a solar system, provided it meets the fairly stringent requirements (a good thing in our opinion), it becomes eligible to qualify for Small-scale technology certificates or ‘STC’s’.  The  Federal Government’s Small-scale Renewable Energy Scheme (SRES) determines that an STC is equivalent to 1MWh of energy. The number of STC’s you qualify for is based on the amount of energy your installed system will produce (in MWh) over a 15 year period. So, basically the number of STC’s your proposed solar system will qualify for is determined by the size of the system (1.5Kw, 3Kw, 5Kw etc) and your location. The location is important as, for example, a solar system in Brisbane will generate more electricity than one installed in Hobart (same system size and timeframe). The STC calculation takes this into account.

Confused? Ok, lets look at an example:

Using the STC Calculator a 5Kwatt solar system installed today (15/8/2013) in Brisbane (using postcode 4000) will generate 103 STC’s

OK, so how much is an STC Worth?

STC’s are traded like a stock or commodity and the price fluctuates daily. As of today,  (15/8/2013), various STC traders are quoting prices of around $36 / STC.

How This Impacts Pricing Of Solar Systems In Brisbane

In the majority of instances, when a solar company in Brisbane quotes you for the supply and installation of a solar system, the price quoted takes into account that you will assign the STC’s to that solar company (check that this is the case!), who can sell them to a registered trader or hold on to them and sell at a later date. In the above example the value 103 STC’s could be worth 103 x $36 = $3708. As the Clean Energy Regulator points out, this $3708 is not a ‘rebate’ at all – you are effectively  ‘claiming credit’ for your solar panels producing clean energy over the next 15 years. This is energy that might otherwise be produced by, for example, coal fired or gas fired power stations and the credit is the incentive to produce electricity via alternative means like solar power.

Further Reading :http://ret.cleanenergyregulator.gov.au/certificates

Disclaimer: Regulations, Available Feed In Tariff’s and Federal Government Incentives For Installing Solar Panels Systems Change Regularly. Whilst making every effort to ensure that the information in this article and website is current and accurate we accept no responsibility or liability for any inaccuracies of information on the website or failure to keep the information on this website up to date.  Users of this website should verify the information before acting on it.