STCs for the Residential Solar Panel Systems

We all know that Australia is deploying renewable resources at a much faster rate than any other country in the world, despite having a wind energy segment that has been distributing solar. Australia is known as a sun-kissed country as it receives 5–6 hours of sunlight per day. Apart from this, it is also considered in the top ten countries in the globe having high GDP per capita, larger homeownership and many single dwelling buildings. The fact is its low economic discrepancy makes the rooftop solar idea suitable for this country. Another reason that people are switching to the solar Panel System rooftop is that solar will definitely be low council and require fewer government approvals that actually keeps the prices down.

Australia has installed 107.56 MW of rooftop capacity which will be spreading across the entire continent by the year 2020, hence reaffirming its outlook on renewable energy resources in Perth. There is no doubt that Australia has always been very welcoming to the new upgraded technology and coping up with the changing times. So, this understanding has led to the innovation of various schemes for later graphs for the population benefits and makes it easier for them to handle the time.

Earlier in the year 2021, the policy to source two per cent of the electricity demands of the country was in place, later it was increased to 20% in the year 2009. The major changes in the policy came in January of the year 2011 when the policy was split into two parts:

LGCs:

Large Scale Generation Certificates were created and the use of these certificates is that they can be claimed for the solar systems that are more than 100kw in Australia. They are created for every MWh of electricity that your system will generate and later can be traded in the market against the current price of the LGC. Also, to be able to create your LGCs, your system should be accredited as per the REE act. Always keep in mind that LGCs are created on a year depending on the year basis.

STCs:

Small scale technology certificates are basically for residential solar System and small businesses having systems that are below 100kW in Australia. These certificates are issued depending on how much electricity your solar-powered system will generate until the year 2030. To be precise, one MWh of electricity converts to one STC. For instance: if your system generates 100MWh of electricity by the year 2030, then depending on the trading price of STCs that may vary with time, and can rise maximum up to around $40.

Some of the areas in Australia also provide rebates in the form of Feed-in Tariffs. In case of feed-in tariffs, you can sell you extra energy generated to the government. These tariffs are usually around 7–12 cents/kWh that totally depending on your electricity retailer.

Deeming Period:

Talking about the deeming period compared to STCs which usually declines every year from the year 2017. For instance, if you had installed a system in the year 2020, then your deeming period will be 11 years.

Availing discounts by using the STCs:

The government has decided to provide solar rebates to the people who are installing solar systems by using the STCs depending on the location of the system. Location plays a very important role in electricity generation by using solar-powered systems. The amount of sunlight falling on the solar panel may vary depending on the location of solar-powered system setups. Also, if the area of the location where the system is installed is very much prone to dust then it may hamper the generation of electricity. Accordingly, Australia has been particularly divided into four separate zones as per their postcodes.

Each Zone has its own multiplier which is used to calculate the STC value of that particular zone. STCs are calculated based on the following factors:

1. Geographic location (zone)

2. Installation date & deeming period

3. System size in kW

The formula for calculating STCs:

Number of STCs = Postcode Zone Rating X Deeming Period Years X System Size in kW

It’s high time to think about switching to solar power. You have a brilliant chance to become an eco-friendly resident of this beautiful planet. Also, you will be able to minimize your electricity bills. Stop waiting for the perfect deal, just go and get the perfect one according to your preference.