So you’re interested in installing a solar system for your home or business, but the acronyms and technical jargon have you stumped?
Don’t worry. You’re not alone. These terms can be confusing at the best of times!
That’s why we’re going to tackle an important one today—STCs.
We’ll cover everything you need to know, starting with what they are, what they’re worth and how you can claim your STC incentive.
Note: Interested in finding out how much your solar rebate could be in 2022? Try our Free Solar Rebate Calculator to find out more.
What Are STCs?
STCs are Small-scale Technology Certificates that you can redeem when you install small solar, wind or hydroelectricity systems. But today, we’ll focus on STCs for solar systems.
The higher the forecasted output of your system, the more solar STCs you’ll receive when you install it.
However, the number of STCs you receive depends on three factors:
- Where you live.
- When you install your system.
- How big your solar system is.
Firstly, where you live will determine how much light energy your solar panels will likely receive. In Queensland, we’re lucky to have one of the highest location ratings, which is only fitting for the Sunshine State.
If you want to maximise your STC incentive, changing where you live is a big ask. However, you can influence the following two factors tremendously.
Your installation date directly affects your solar STC rebate because the incentive is based on how many kilowatt-hours (kWh) your system generates by December 2030. This deadline means the longer you wait, the fewer kWh you’ll generate and the fewer STCs you’ll receive.
Finally, larger solar systems generate more kWh which means more STCs and vice-versa.
How Much Are STCs Worth?
The value of STCs fluctuate on the open market—think of it as a mini stock market. The price is determined by the buyers and sellers who trade solar STCs.
Thankfully, the STC open market price has been relatively stable over the last year, sticking around the $39 mark.
Alternatively, you can sell your STCs through the STC clearing house, which offer a fixed price of $40 (excl Goods and Services tax.)
What Is The Current STC Price?
The current STC price is $39.65 and has been relatively stable over the last year. However, this valuation can change in the blink of an eye.
For example, both the ESC (Energy Saving Certificate (NSW)) and VEEC (Victorian Energy Efficiency Certificate) have changed in valuation significantly.
Over the last year:
- ESCs have experienced a high of roughly $39 and a low of $30.
- VEECs have experienced a high of $83 and a low of $46.
How Many Solar STCs Can You Get For a 6.6kW Solar System?
The number of STCs you receive for a 6.6kW will depend on when and where you install it.
For example, if you were to install this solar system in Brisbane in March 2022, you’d receive roughly 82 solar STCs. However, if you were to wait one year, you’d receive only 72 STCs.
The STC incentive you receive will also differ depending on where you live. However, most suburbs in QLD have a similar zone rating.
How Do You Claim The STC Rebate?
You can claim the solar STC rebate in a couple of different ways, such as:
- Selling STCs on the open market or to the STC clearinghouse.
- Using a 3rd party, such as a solar installer, to sell your STCs.
Selling on the open market or to the clearinghouse requires you to create an account, verify your identity and jump through a whole host of hoops.
For example, you’ll need to ensure that the solar system and installation meet multiple Australian Standards. This option could cause serious headaches if you aren’t knowledgeable about solar system installation.
Alternatively, most reputable installers will give you an upfront discount based on your system’s specifications. Plus, you won’t have to worry about the tonnes of proof they have to submit to register your STCs. That’s why using a 3rd party is the best (and safest) way to claim your solar STC incentive.
Make Sure to Take Advantage of STC Incentives Before They Drop
As you’ve learnt, the number of solar STCs you receive depends on three factors, with an important one being time.
Based on the calculations we did above for a 6.6kW system, you’d lose out on roughly $400 worth of STC incentives by waiting just one year!
That’s why now is the best time to contact a reputable solar panel installer and begin discussing your options.
Still have a few STC questions on your mind?
Then get in contact with us today! One of our friendly solar professionals will answer any questions you have.
