New Year – New solar Resolution. It’s that time of the year when you are again going to come across those ads screaming about solar rebates reductions. Do you have a plan for installing solar panels in your residential or commercial place? Here’s is a gist of what you need to know.
Solar Rebates and STCs
The “solar rebate” in Australia is accessible under the Small-scale Renewable Energy Scheme (SRES). It is based on Small-scale Technology Certificates (STCs). And, the value of these certificates often varies depending on the market conditions.
STCs can’t be created until a system is installed. But their value is always offered as an up-front discount. Also, the pricing advertised for solar power systems includes the subsidy. That means it’s not exactly a rebate. But it is the most commonly used term.
How many STCs a system is qualified for depends on certain factors as follows:
- The year the system is installed
- The Geographical Location of the installation
- Solar panel capacity (not inverter capacity)
The installation year determines the deeming period multiplier. And the final of the SRES deeming period is 2030. The deeming period reduces by one year each year on 1st January.
2021 Solar Rebate Reduction
There is no need to mess with the formulas. Instead, only use an STC calculator, and you can get an idea of the rebate reduction in 2021. The highest value STCs can achieve is $40, and the lowest value is $0.
The spot prices for STCs have remained between $37.25 – $39.95 over the past year. And it was $37.25 – $37.75 in November 2020. Solar businesses charge an admin fee to deal with the complexities related to making and selling the STCs.
Make an Informed Decision
If you check out the installation of the same solar system this year and the previous year; you may not find any significant change in the number of STCs and rebates. But don’t make a hasty decision depending on that. After all, it is a decision that you will be living with for years to come.
The STC spot prices were pretty good in 2020. But that doesn’t guarantee it will be the same in 2021 too.
It is crucial to research solar energy and solar installers’ reviews before making a final decision. Remember that the longer you delay solar panel installation, the longer you will have to pay for the electric bills. A solar calculator can get you an estimate on how much you can save with solar system installation.