What you need to know about Solar Power Rebates in NSW.
Rebates are available to qualifying residential and commercial premises in Australia that install Solar Panels and other Renewable Energy Systems.
These rebates can mean significant reductions in the cost of Solar Systems -and have been designed to encourage Australia’s use of renewable energy.
The rebate program – which is part of Australia’s Renewable Energy Target – means that when you install a Solar System, a number of Renewable Energy Certificates are created. These Certificates (referred to as STC’s – or Small-scale Technology Certificates) are then purchased by Energy Companies as part of their Renewable Energy commitments.
The value of these Certificates can vary and can either be deducted from the price of your system or sold (usually at a higher price) via the Clean Energy Regulator’s certificate Clearing House system.
There are also several additional incentives and grants available for commercial systems. One of our commercial consultants would be happy to discuss these with you.
Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STC’s) – previously known as Renewable Energy Certificates or RECS – are created when a Renewable Energy System such as a Solar PV system is installed.
The number of STC’s depends on the size of the system and therefore the amount of energy generated. In essence, one STC is created for every megawatt-hour of production capability of the system. In simplistic terms, a 2kW solar system would be expected to generate between 2.4MW and 2.9 MW per year depending on location.
This is further multiplied by the number of years the system is likely to generate energy (for home solar systems, this is usually 15 years, although the life of the solar panels themselves is considerably more than that).
There are currently great rebates available on all of our solar systems. The larger your system the greater the rebate!
* Based on an STC price of $35. Real savings may be even greater!
What does this mean for me?
When we install a system, we normally reduce the purchase price by the value of the STCs created by your system. There is no additional paperwork, and you receive the value of the STCs at the current market price.
STC PRICE: The system for trading and pricing STCs for small systems is managed by the Small-scale Renewable Energy Scheme (SRES).
STCs are bought by Liable Parties (usually electricity retailers) and must be surrendered at the end of each quarter.
As the number of STCs that are required to be surrendered is a fixed amount each year, but the number of STCs created is variable, the price paid for STCs also varies and is determined by supply and demand.
The Federal Government legislated in 2010 a fixed price for STCs by implementing a Clearing House system where STCs can be bought and sold for $40. However, there is no requirement for Liable Parties to purchase from the Clearing House, so they are likely to only do so if there is a shortage of STCs or the market price exceeds $40.
There is currently a surplus of STCs in the market which means the market price of STC’s considerably below $40.
However, as the price of solar systems has literally halved over the past 18 months or so, this means that the reduction in STC value has been more than absorbed by the decrease in panel costs.
Do I need to know all of this?
No, we make it simple for our customers by offering a number of easy options for obtaining cost reductions with STC’s, including deducting the value of the STC’s from the purchase price or arranging with you to put them in the Clearing House System. We would be happy to discuss these with you based on your own requirements.