Prices of Solar panel installation would increase in 2020.
Lock-in your 2019 solar installation as there would be a significant drop in the number of STC’s that would be awarded against the size of the system.
STC support from Australia’s Small-scale Renewable Energy Scheme will certainly be lowered in 2020, triggering a rise in the expense of solar panel installations across the nation.
Under this scheme, numerous small-scale technology certificates are awarded to home and business owners who install solar panels on the roof of their properties. The number of STCs awarded against the system depends upon its size.
The monetary worth of these STCs is deducted from the total price of the installation. The value of STC’s is variable and is driven by supply and demand.
According to Federal Energy Minister, the number of STC’s given out will be decreased each year and over the next 12 years, the scheme will be phased out.
Impact of STC’s on solar:
Checkout the following example to see how much would the customers need to pay with the decrease in the number of STC’s in the coming years.
Currently, a 6.6 kW system receives 111 STC’s. As we know the monetary value of the STC is variable and it fluctuates depending upon the demand and supply. The current value of 1 STC is $35.
If we calculate the total STC amount for 6.5 kW system then it would be $35 X 111 = $ 3885. This is amount which would be deducted from the total which the people usually call the Government Rebate for solar installation.
Decrease in STC’s
Now, if the number of STC’s granted would be decreased so the total Rebate amount would also decrease.
Post 31st Dec 2019, the same 6.5 kW system would receive only 100 STC’s and with each year, the number would decrease further.By 2030, it would be zero.