What Are STC’s and How Do They Affect You?

Australian households and businesses continue to embrace solar energy at a rapid pace in a bid to avoid rising electricity costs.

Under the government’s 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.

 

So why do STC’s fluctuate?

Like shares, STCs have a trading value, which fluctuates depending on supply and demand. As well as being phased out annually until it is stopped completely in 2030, at the latest.

The commodity value of STCs have decreased recently and is currently sitting at $30.50 at time of sending, dropping from $38.00. The volatility of the government STC price means that the cost of your solar system can move right up until the day of installation, possibly increasing your original quote by thousands of dollars on commercial jobs.

 

What do we recommend?

Although, there has been a drop in the value of the government STC rebate in recent months, which is only expected to drop further in the future. We don’t want this uncertainty to restrict homeowners or businesses making the switch to smarter energy solutions, and taking advantage of the government incentive that could save you thousands.

That’s why SAE Group have decided to offer the option of locking your contract in with the STC value set at $32.00, sitting above the current value of $30.50 and lowering the price you pay for a system even more! This ensures we can offer you a competitively priced solar system with the peace of mind that your proposed price won’t change, whilst saving thousands with this fantastic government incentive!

 

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