The Small-Scale Technology Certificate (STC) solar rebate is a financial incentive provided by the Australian government to encourage households and businesses to invest in solar power systems. The scheme is a market-based mechanism that works by creating tradable certificates for eligible renewable energy systems, which can then be sold to liable entities such as electricity retailers.

In other words, it's free funding for you to install solar. We generally assume that the rebate will cover most of your installation costs.

How many STC's does a solar system create?  

The number of STCs generated by a solar power system depends on its capacity and location. Generally, the larger the system, the more STCs it will generate. The amount of STCs generated also varies depending on the location of the system, as different regions receive different amounts of sunlight.

Duration of the STC Scheme  

The current STC scheme is scheduled to run until 2030, and the number of STCs generated by a solar power system is calculated based on its expected electricity output over a 15-year period. As of May 2024, the value of each STC is approximately $38. As a rule of thumb, the sooner you install solar the better it is for you financially in terms of the rebate paid.

How are the STCs assigned?  

When a household or business installs a solar power system, they are eligible to create STCs. However, many people choose to assign their STCs to their solar installer instead of claiming them themselves. This is because solar installers can offer a discount on the upfront cost of the system in exchange for the STCs. By assigning their STCs to the installer, the customer effectively transfers ownership of the certificates and receives a lower purchase price for their solar system.

At Virtual Power Co, we typically will offer this discount at the point of sale discount and then arrange your rebate claim on your behalf. This is so you don't need to spend months chasing up a rebate, thus making your solar journey smooth and easy.

Summary  

In summary, the Small-scale Technology Certificate (STC) solar rebate is a government initiative that encourages investment in renewable energy by providing financial incentives. The number of STCs generated by a solar power system depends on its size and location, and the scheme is set to continue until 2030. Many people choose to assign their STCs to their solar installer to receive a discount on the upfront cost of the system.

If you want an easy way to calculate the number of STCs that an installation will create, use the official calculator below:

https://www.rec-registry.gov.au/rec-registry/app/calculators/sgu-stc-calculator

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