There are two main incentives that can help pay off solar PV systems: small-scale technology certificates (STCs) and feed-in tariffs (FiTs).
Small-scale technology certificates (STCs)
Under the federal government’s Solar Credits Scheme, eligible households receive money for STCs created by their PV systems. STCs were formerly known as renewable energy certificates or RECs. Currently, the scheme allows you to cash in the certificates you could earn over the next 14 years straight away.
While the government has set a price of $26 per STC sold through the STC Clearing House, the price you get will vary depending on how you choose to sell your STCs.
The easiest and most common option is to allow someone else – usually the installer – to sell them on your behalf. This may then be applied as a discount to your installation costs. The benefit is that the process is easy, with all the paperwork taken care of for you. The downside is you’re likely to get less money per STC – you can expect about $20 or lower per STC.
The second option is to sell the STCs yourself, which involves considerable paperwork, applications and fees. Depending on the number of buyers and the time it takes to complete the process, it may be months after installation before you receive your funds. There’s no way to tell exactly how long you could be waiting, which means unless you have the capital you might find yourself out of pocket. However, you should get a better price. On average, clients who sold their STCs themselves got a price of $20 per STC, with the highest price per STC being $28.
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To be continued……