The great news about residential and commercial solar is that the Government has included both solar hot water and PV as technologies which are eligible for incentives known as Small-Scale Technology Certificates (STCs), which are linked to Australia’s Renewable Energy Target (RET). The value of STCs fluctuate depending on market factors, however are currently worth over $1,000 for a typical solar water heater and up to $4,000 for a large residential PV system. In commercial applications the incentive increases significantly, as systems go up in size. These incentives are generally paid as a point of sale discount, thus greatly reducing the up-front cost of going solar.
How do STCs work?
By installing a solar water heater or solar power system on your property, you are most likely still eligible for STCs. These STCs can be used to reduce the purchase price of your new system and can often save you thousands of dollars.
For a Solar Hot Water system, each STC represents 1 megawatt hour (MWh) of electricity displaced over a 10 year period. For a Solar Power system, each STC represents 1 megawatt hour (MWh) of renewable electricity produced over 15 years. The number of STC’s created varies with the size and model of solar water heater or PV system and the region (or zone) in which the unit is installed. The value of an STC is not fixed and varies depending on market factors.
Once you install a solar water heater or solar power system, the STCs produced can be traded and sold on the open market. You can assign the right to create your STCs to Xceed Solar who will pay you the value of the STCs as an upfront discount on your system.
In addition to Federal Government incentives, the Victorian and South Australian Governments offer incentives to help you make the switch. To find out more about these state-based incentives, contact us through our inquiry form.
To provide a further financial incentive to switch to solar power, some State Governments and electricity providers offer preferential feed-in tariffs. These tariffs allow you to sell any excess electricity you generate back to your electricity provider. Talk to us today to find out more.