Understanding STCs: How This Federal Incentive Slashes Your Solar Costs

If you’re considering going solar, you may feel overwhelmed by the array of rebates, credits, and incentives that are available. Among them, the concept of Small-scale Technology Certificates (STCs) might seem particularly complex, though they offer significant potential for savings. In this article, we’ll decode STCs in a clear, easy-to-understand manner so you can leverage this scheme to offset your solar costs and enjoy a greener future.

💡 What Are STCs?

Small-scale Technology Certificates (STCs) are digital certificates generated when you install an eligible solar panel, wind, or hydro system. The purpose of STCs is to create a financial incentive for individuals and small businesses to install renewable energy systems – the more green energy we produce, the less we depend on fossil fuels.

🗣️ “The STC scheme rewards those that contribute to Australia’s renewable energy target, hence playing a part in the country’s transition to a sustainable future.”

⚡ How Do STCs Work?

System Eligibility

First and foremost, the system installed must be eligible. The eligibility of a system is determined by factors such as capacity, installation date, and location. Only solar systems up to a maximum capacity of 100 kW are eligible (cleanenergyregulator.gov.au).

Creation of STCs

Once your eligible system is installed, it creates STCs which are based on the amount of electricity a system produces or displaces. Essentially, one STC is equal to one megawatt-hour (MWh) of electricity produced or displaced (cleanenergyregulator.gov.au).

Value and Trade of STCs

The value of STCs isn’t fixed. It can vary based on supply and demand in the STC market. Once created, these STCs can be sold to recoup a portion of the cost of purchasing and installing the system.

💬 “STCs provide a significant boost in making solar power more affordable. It’s a win-win, cutting energy bills while contributing to a cleaner environment.”

💰 How Can STCs Reduce Your Solar Costs?

STCs effectively act as a form of currency. When you have your solar system installed, your installer will often offer to buy your STCs as a point-of-sale discount on their invoice. This reduces your upfront cost substantially.

🔹 The number of STCs generated depends on your system’s expected performance up until 2030, which is when the STC program is set to end (energy.gov.au).

🔹 The actual dollar value of each STC varies as it’s based on market conditions. However, taking an average value, we can say that each STC is worth about $40 (CSIRO).

🔹 To simplify the calculation, the Australian Government has a comprehensive STC calculator, which you can use to estimate the number of STCs your system could generate.

🗣️ “STCs can significantly offset the initial cost of solar systems making them an attractive investment for homeowners and small businesses.”

🚀 Want to Maximise Your Savings?

At Supa Energy Hub, we help homeowners unlock every rebate and incentive available – while designing the perfect solar and battery solution for your needs 💪

📞 Call us today or send us a message to book your free savings assessment!