STC financial incentives for solar power systems will not be quite as generous in the future

As a matter of fact, they will start to gradually reduce in January 2017 until they drop out altogether in 2030. Why?

Small-scale Technology Certificates (STC) are currently used to reduce the purchase price of your new Solahart system, and can often save you thousands of dollars. The number of certificates created will vary based on:

  • the size and model of solar water heater or PV system you choose
  • the location of the installation (or zones)
  • the amount of electricity in megawatt hours (MWh) the system will generate over what is known as a deeming period (15 years for PV and 10 Years for Solar Hot Water) or 2030 – whichever comes first:

    • For a Solar Hot Water system, each STC represents 1 megawatt hour (MWh) of electricity displaced over a 10 year period or until 2030.
    • For Solar Power system, each STC represents 1 megawatt hour (MWh) of renewable electricity produced over 15 years or until 2030.


The STCs produced by the installation of a Solahart system can be traded and sold on the open market, or your local dealer can exchange them at a discounted price of your system to the current value of STCs. This saves you the hassle of dealing with the certificates post-purchase and reduces the initial capital outlay required.

Solahart Solar Power Systems

The deeming period for certificates is 15 years or 2030, whichever occurs first

This means that from January 2017, the deeming period will be reduced to 14 years. In 2018 it will reduce to 13, and the following year it will reduce again – and so on until we reach 2030.

For example, a 5kW Solahart solar power system installed in Sydney (Zone 3) is currently entitled to 105 certificates. The current rate of STCs is $37 per STC, which means that until 1 January 2017 the cost of the purchase of the system is reduced by $3,885 – which is a great incentive.

After 1 January 2017 this amount will reduce to $3,626 (i.e. reduced by one fifteenth)

If you are still unsure if now is the time to go solar, the following table should help you understand what will happen over the next few years and how it will affect the overall cost of making the switch to solar.

Going solar is a decision that perhaps shouldn’t be left until last moment also considering that STC’s value may also change in the future. (Currently $37)

 

Installation date

The deemed life of the system

Example
5kW System (zone 3)
Total STC certificates

STC rebate amount
For a 5kW System (zone 3)
(based on $37 per STC)

Up to and including 31 December 2016

15 years

105

$ 3,885

From 01 /01/ 2017

14 years

98

$ 3,626

From 01 /01/ 2018

13 years

91

$ 3,367

From 01 /01/ 2019

12 years

84

$ 3,108

From 01 /01/ 2020

11 years

77

$ 2,849

From 01 /01/ 2021

10 years

70

$ 2,590

From 01 /01/ 2022

9 years

63

$ 2,331

From 01 /01/ 2023

8 years

56

$ 2,072

From 01 /01/ 2024

7 years

49

$ 1,813

From 01 /01/ 2025

6 years

42

$ 1,554

From 01 /01/ 2026

5 years

35

$ 1,295

From 01 /01/ 2027

4 years

28

$ 1,036

From 01 /01/ 2028

3 years

21

$ 777

From 01 /01/ 2029

2 years

14

$ 518

From 01 /01/ 2030

1 year

7

$ 259

After 31 /12/ 2030

Nil

0

$ 0

These are indicative figures based on the amount of certificates @ $37 per certificate.  STC’s are variable and subject to change and correct as at 1/10/2016.

Solahart Solar Water Heaters

The deeming period for certificates is 10 years or 2030, whichever occurs first.

This means customers wanting to purchase either solar water heaters or heat pumps can still get full STC incentives until 2022.