Financial Incentives to Install Solar
Installing a solar power system is a great way to reduce your power bills. The costs of installing solar are also supported by the Federal Government's Renewable Energy Target (RET). The RET includes a way for energy certificates to be created whenever new solar is installed. The RET also makes energy companies buy a certain amount of these energy certificates giving them a cash value. For solar systems smaller than 100kW these certificates are called Small-scale Technology Certificates (STCs). See the value of STCs in 2017 in the chart below.
A feed-in tariff is the amount that you get back for any unused solar power that feeds into the grid.
In the early days of rooftop solar different states paid high rates to solar home owners for their solar energy. The Solar Bonus Scheme in NSW for example paid 44c/kWh for solar feeding the grid. This was needed at the time as solar power was much more expensive than it is now. The state based solar feed-in tariffs are now closed to new entrants. Although, the good news is that solar installation is much more affordable than it was at the time these schemes were running. Also, energy companies will still pay for solar feeding the grid, and different companies will offer better rates so it's worth shopping around.
How do STCs work?
STCs are certificates that represent a given amount of energy (1MWh). If you have a wind or a solar generator rated under 100kW you can create them with the Clean Energy Regulator. Although this is a lot of paperwork, and most solar installation companies will do the paperwork for you. The value of the certificate is usually included as a discount on the installation price.
Remember each STC represents a megawatt-hour of solar or wind energy. Under the RET law, companies selling electricity must buy a certain amount of STCs which equal a % of their total energy sales. The companies don't own the energy produced (the owner of the solar system does!), but they must buy the STCs, which creates extra value for solar owners.
This all sounds a little complicated??
Creating the STCs for your system is a bit of a process, but don't worry! LuvSolar will handle every aspect of this for you. All quotes are inclusive of the value of the STCs. LuvSolar merely creates and sells the STCs through a reputable clearing house on your behalf . This is how we can give you the best value system with the least hassle. So get a quote through the link below or call us directly on (02) 4910 0939 and start saving with solar today.