If you are considering putting a Solar System on your home or even have one, it’s important to understand what Small-Scale Technology Certificates are, and how they can or already have reduced the cost of your solar system. I have had my solar system for a few years now and keep seeing ads like the one below from QLD Solar Incentive that state I can claim up to $3800 in solar rebates. Until I understood what Small-Scale Technology Certificates were, I thought I was missing out on some much-needed cash.
What are Small-Scale Technology Certificates?
Small-Scale Technology Certificates, commonly referred to as STCs, are part of the Australian Government’s Small-Scale Renewable Energy Scheme to help Australian homeowners reduce the cost of installing a variety of small scale renewable energy systems, including:
- Solar photovoltaic (PV) panels
- Wind turbines
- Hydro systems
- Solar water heaters
- Air source heat pumps
These certificates are traded on the environmental market and are not a physical piece of paper but rather a commodity that is traded like stocks on the stock market. Demand Manager is a website that I found particularly useful in describing how these markets work.
Who owns the STCs?
You own your STCs, and you can choose to sell your STCs yourself; however, this can be a lengthy process. You must do your research in order to understand what you are doing, including becoming a registered renewable energy certificates (REC) Agent. It can take several months for you to sell your STCs through the STC clearing house, governed by the Clean Energy Regulator who has set the maximum price of $40 per STC.
How can I get my money then?
A far easier option is to discuss what amount your installer is willing to pay for your STCs and make sure that this is within a reasonable amount offered by the Clean Energy Regulator. Australia is divided into Zones and how many STCs you can get per system varies from state to state.
From there you surrender your STCs to them and they sell them for you and offer this amount as an upfront discount off the cost of installing your solar system. It’s important to understand that your installer is most likely using a trader to do this for them and therefore you will be offered less as they will have fees to pay for using this service.
In Conclusion
If you installed your solar system after 2017 your installer or you should have used your STCs to reduce the cost of installing the system. If you are worried that you have missed out, check the contract that you signed to ensure that your STCs were applied as a discount or contact your installer and check with them. I would love to hear from you if you have successfully traded your own STCs or would like any more information about how STCs work.
