Capitalizing on its bright sunny weather conditions, Australia has undertaken the pioneering initiative of motivating the use of renewable solar power. By means of introducing the lucrative solar credits program in order to attain the renewable energy target, the federal government has pledged to reward every megawatt hour of qualifying energy generation with renewable energy certificates (RECs).
The solar credits subsidy levels vary with three factors:
- Zoning or the location you live in
- STC values which constant fluctuate
- Deeming period which decreases by one year until 2030, reducing the number of certificates for an eligible system.
STC certificates have two variants- large and small and is applied as per the size of your purchase / installation. STCs or small scale technology certificates are generally applicable to solar panel for home, also termed as residential solar installations.
Under the renewable energy scheme households with solar power systems up to 100 kW receive STC certificates.
Actually STCs have a trading value that is not stable and completely depends upon the demand and supply. Small scale system owners or those who own solar panels for home and registered businesses can opt for selling STCs through open market for an unrestrained price as per negotiations between the buyer and seller beyond REC register. Whereas on the event of selling through STC clearing house, the payment for the certificates is directly transferred to the seller’s chosen bank account.
STC prices since mid of last year had suffered a drastic decrease sending out shock waves to photo voltaic customers across Australia. This has lead to the rise in solar system prices. This has been triggered by the excessive availability of STC in reference to the amount required for attaining the renewable energy target of 2017. Therefore, buyers are able to negotiate lower costs, leading to the drop in price. For obvious reasons buyers will not opt for the clearing house which is already at its all time high.
In case, one is running short of time and would like to immediately capitalize on the STC, he should be opting for a retailer who will definitely offer a point of sale discount and assign the deserved. on the other hand a registered agent can help you through the process.
Solar energy system installers are mostly heard of exchanging their STCs for an open discount on their PV system.