Increased use of solar PV systems is beneficial to users and government, both. Therefore, all governments across the globe have their own policies to benefit users of solar energy, so the use of renewable energy can be increased. In Australia, the Australian government has STCs (Small Scale Technology Certificates). It is commonly referred to as rebates, which make the best solar systems Australia affordable to everyone.
In this blog, we will share everything important that you must know about STCs.
What is STC?
- For all solar systems with a capacity less than 100 kW, STCs get issued at the time of installation of solar PV systems.
- Each business or home receives a different number of STCs as the number is defined based on the deeming period, geographical location and the capacity of the solar panel.
- The STCs can be sold, which is why they hold a certain value depending on various market factors. Usually, the companies offering the best solar systems Australia take the responsibility of selling STCs. Therefore, the company responsible for the installation and provision of solar panels calculates the price of STCs and deduct that amount from the total cost of the solar system. In layman’s language, it is considered as rebates on the solar PV systems.
Can I Trade STCs?
Many people have this question and the answer is yes, you can. Here is the process of trading the STCs.
- You need to create STCs yourself upon installation of the solar system. For that, you need to register at the REC Registry.
- You need to pay the registration fees and have to prove the eligibility for STC trading and ownership of the solar system installed at your home or office.
- Once your account is created at REC Registry, you can trade the STCs in the open market. The process is quite similar to stock trading.
One thing, you need to remember is even if it sounds a simple process, it may take a year to complete the formalities and become a member. Also, you will have limited STCs, so you would get a price for Small-scale Technology Certificates accordingly. On the other hand, companies offering the best solar systems Australia trade in bulk and therefore, more likely to get a better price for the STCs. Therefore, it is better to let the professionals do the job.
What is the Deeming Period?
Usually, if you give the contract to the installer of solar PV systems, you do not need to get into details of technical terms. Still, its knowledge will help you understand the rebates you get. The number of Small-scale Technology Certificates to be issued is calculated based on the following formula:
System size in kW x Deeming period year x Postcode zone rating
Deeping period is counted as how much renewable energy will be created by your solar system by 2030. The year 2030 is when the STC scheme is set to phase out. Therefore, buying a year also makes a difference in rebates or total cost you pay after rebate. As you know rebates are counted by the cost of STCs.
