Australian households and businesses continue to embrace solar energy at a rapid pace in a bid to avoid rising electricity costs.
Under the governments Renewable Energy Target scheme (RET), the current STC ‘rebate’ will reduce again at the end of the year, which means the cost of solar systems will never be as affordable as it is right now. How can we be so sure? It all comes down to understanding the federal STC (small scale technology certificate) scheme, so let’s quickly break it down.
Understanding the federal STC rebate
The federal government currently offers a financial incentive for Australians homes, businesses and community groups to take up solar in a bid to meet our renewable energy target by 2030, and stabilise the electricity grid. This incentive comes in the form of an STC (small scale technology certificate) which is applied directly to the solar system at the time of installation. Each year the calculation is adjusted according to how many years remain until the scheme is entirely phased out.
For the end user, this means that you, as the customer benefit from the program right from the get go, you are not out of pocket, and do not have to claim any money back. The STC rebate is applied to the upfront cost of your solar system, making it more affordable than ever before.
Taking in to account the demand has spiked it is expected that the STC price will drop in 2018. While 28 to 35 dollars might not seem much, when you apply the calculation this can mean the difference of nearly $500 of a 5kW system, now that’s a considerable amount of cash in your back pocket, so if you’re considering solar. Remember to secure the current STC price, your solar system must be installed before the December 31st so don’t delay, ACT NOW and save yourself some serious money.
We are genuinely passionate about the benefits of quality energy solutions designed to deliver you real savings. If you’re ready to take control of your energy future, and you’re looking for honest, trustworthy advice from your local energy contractor, call SAE Group today on 1300 18 20 50. To find out more visit www.saegroup.com.au
So why do STC’s fluctuate?
The STC scheme is traded on the open market, prices fluctuate based on supply and demand. During the first half of 2017, there was a significant spike in the increase in solar installation (23%) across the country which drove down the STC price to as low as $28.00. Right now, STC’s are trading at a relatively healthy $33. However, as we move closer to the end of the year, the Clean Energy Regulator (the body responsible for setting the size of the STC market annually) will look at resetting the STC price for the year ahead.