Government Solar Power Rebates - RECs
What is STCs, and how does it work?
On every successful solar PV Installation government incentives awarded/claimed in the form of small-scale technology certificates (STCs), It will reduce the cost of your solar PV installation and significantly boost the ROI of your solar investment. This is also an encouraging factor behind more Australians going solar and Save.
These certificates are an electronic form of currency and are allocated to you on successful installation of a solar PV system. One STC is equivalent to one megawatt-hour of electricity generated by your solar PV system in 15 years. Your system will last longer then this period. Your STC amount varies on site location, as some locations has longer sun hours and generate more power attract more STCs then a site with normal sun hours.
There Are two ways you use STCs:
1. Most convenient way of getting paid with these STCs would be assigning it directly to your solar installer. Your solar installer would give you cash or offset it from your final payment. It’s good to have STCs shorted this way as it will reduce your up front cost rather than going to a registered agent in exchange for a financial benefit, which may be in the form of a delayed cash payment (most consumers take this option),
2. Create the STCs as it will automatically assigned to yourself by claiming through Renewable Energy Certificate (REC) registry. Then you need to find a buyer who can purchase these STCs from you at a negotiated price. You then need to transfer sold STCs to them through Renewable Energy Certificate (REC) Registry. Alternatively more information available at the Clean Energy Regulator: rec.cleanenergyregulator.gov.au
In other words, STCs are like shares and the price of STCs changes according to market conditions. The more demand of these STCs will increase the rebate value and sometime it will reduce the value. Market rates for these STCs stays in between $32-37 per STC.
Your location also plays a major role on STCs. There are various zones in Australia based on its Renewable Energy generation by solar panel in given areas. Generation from same size system in one zone will differ the generation from another zone. STCs is based on a generation in megawatt In 15 years and will generate different amount of STCs.
Lets take an example.
5 kw in Melbourne, Vic or Tasmania (which is in zone 4) receives 88 STCs (Approx rebate = 5kw*1.185 Rating*15 years= 88.775*35= $3110) , which is fewer then sunny Qld town or Western Australian town (103 STCs = Approx $3627) . Where these 5 kw system based here will generate more power over 15 years period due to longer Sun hours.