There are currently two types of incentives for Australians to install solar systems in New South Wales.
1. The State Government Feed In Tariff. This has now ceased in NSW.
Any excess power above your own consumption your new system generates will be fed back into the Grid. Your new bi-directional meter will count it and your energy retailer should pay you for it. You need to discuss this with your retailer. Some are better than others. Whos best? It depends. So ask us.
In June 2017 The Independent Pricing Tribunal (IPART) recommended that the Electricity Retailers in NSW set their own feed-in tariffs, with IPART providing a benchmark range each year as a guide for retailers and solar customers on the likely value of electricity exported to the grid from solar PV units. The draft benchmark range for voluntary solar feed-in tariffs for 2017-18 is:-
11.6 to 14.6 cents per kilowatt hour (c/kWh).
2. The Federal Government RET.
Australia has a Renewable Energy Target (RET) scheme in place to give incentives for the reduction of Carbon gases and energy usage. This scheme has already reduced the need for energy production from polluting sources, and makes for a better, more environmentally friendly future for Australia.
In simple terms for people considering Solar Systems, the big benefit of the scheme is that the up-front cost of installing Solar Panels is reduced. By how much depends on 2 things.
Firstly. - The quantity of STC's the system qualifies for. The more kilowatts a system can produce, the more STC's it will qualify for. Then there is the deeming period. On 1st January 2017, it decreased from 15 years to 14 years. It will decrease by 1 year, every year, so yes the rebate will dimish by 1/15th every year. There are other requirements as well, but we will look after that for you.
Secondly. - The current Value of those STC's. STC's must be purchased by the big power generators and polluters. The value of an STC can fluctuate daily, mainly due to supply and demand. There is a $40 cap, so this is the maximum price possible.
Government Solar Incentives Explained in detail
What are Solar Rebates?
The solar rebate scheme is designed to support members of the public, community and business in getting renewable energy sources installed on their property. There are a number of good reasons why:
• it will increase their standard of living
• it will reduce their production of harmful Carbon gases
• it will reduce Australia’s need for energy production
• it will help create a “green” industry, with the associated jobs and skilled positions
The Australian Government supports these ideals by offering a rebate against the costs of installation, depending on the ability of the system to utilize renewable energy. The system works by creating Certificates for renewable energy efficiency, each one is worth roughly 1 Mega Joule of energy. The performance of every renewable energy system is tested and rated, resulting in an STC rating. Large energy users and producers of carbon and gas emissions are required by legislation to offset their harmful production and use by purchasing these Certificates.
STC’s and LGC's
Small-scale Technology Certificates (STCs) are created for eligible installations of solar water heaters, air source heat pumps and small generation units (small-scale solar panels, wind and hydro-electricity systems). One STC is generally equivalent to:
1 MWh of renewable electricity generated by a small generation unit, or
1 MWh of electricity deemed to be displaced by the installation of solar water heaters or air source heat pumps.
Large-scale Generation Certificates (LGCs)
Large-scale renewable energy projects, such as wind and solar farms, and hydro-electric schemes, are entitled to create large-scale generation certificates (LGCs). One LGC is equivalent to:
1 MWh of renewable electricity generated above the power station baseline.
Large-scale Generation Certificate (LGC) can be created for Solar Systems above 100kW.
STC's are very popular as they can be created immediately upon installation of the system and can be valued on the power they will save before the end of the year 2030. Solar system installers are permitted to offer the total value of the STC's as an up front discount. This saves the home owner from having to pay the total system cost up front and then having to create and validate the certificates.
You can calculate the number of small-scale technology certificates a system may be eligible by using this
Clearly the environment plays a large role in the use of renewable energy.
Areas of strong year-round sunshine naturally produce more energy,
and have a natural advantage. To encourage the take up in areas of
less solar energy, where the performance is less even if the price
of like-sized installations is the same, the STC's of systems
installed are multiplied according to the postcode of the address.
The country is divided into 4 zones, which largely reflect the
prevailing solar performances of systems across the nation.
New South Wales, for example, has areas in Zones 2, 3 and 4.
More information can be found on the website of the Clean Energy Regulator; http://ret.cleanenergyregulator.gov.au/
What is an STC worth?
Once created and validated, these certificates act as a form of currency and can be sold to recoup a portion of the cost of purchasing and installing the system, or transferred to other individuals and businesses at a negotiated price.
The price of small-scale technology certificates is driven by supply and demand of the renewable energy certificate market and fluctuates daily. To determine an approximate price for small-scale technology certificates, conduct an internet search for small-scale technology certificate traders. Individual trader websites advertise their price for certificates, though this price fluctuates daily.
If you choose to sell your certificates through the STC clearing house there is a fixed price of $40 per certificate, however the Clean Energy Regulator cannot provide an estimate of how long it will take them to sell—certificates listed for sale through the clearing house will only sell when a buyer is available.
Why go with Your Installer?
• the price fluctuates on the open market, between $18-$40. Currently trading around $38 as at 30/06/17.
• we will credit you with current market value for all STC's
Aussie Wide Solar will accept the STC’s as part of the cost of your installation.
This means no hassle for you, eliminating issues such as:
• Paperwork to fill in
• Delays of payment
• Changing regulations and deadlines
• The possibility of you losing out as the price fluctuates daily