Small-scale Technology Certificate (STC) values are currently very strong – and that’s good news for Australians considering installing a solar power system. It’s time to make hay (or install panels) while the sun shines.
STC’s accompany qualifying solar hot water and solar power systems, forming the basis of the Solar Credits program. One STC is equivalent to one megawatt hour of electricity generation over a 15 year period and can be traded for cash.
The number of STC’s provided depends on a system’s size and the installation location – but generally speaking, they can reduce the cost of a 5kW solar power system by thousands of dollars.
Cashing STC’s in is a bit of an inconvenience for the average person, so their value is usually offered as a point of sale discount by solar providers.
As an example, a 5kW solar panel system installed in Melbourne is entitled to 88 STC’s. Based on a current $39.80 STC value; the amount of subsidy on such a purchase is around the $3,500 mark.
While the spot price for STC’s is currently nudging $40, the price of certificates can fluctuate with market conditions. Here’s a look at spot price value over last 12 months according to TFSGreen
The value of certificates can drop far lower than indicated above – at one point, they were trading at below $20. On the 5kW system example, this translates to a difference of over $1,700 in subsidy.
Another pressure on pricing points for solar panels in Australia relates to forex – foreign exchange markets. With the Australian dollar currently very weak compared to a year ago, this increases the AUD landed price of solar components. A couple of days ago, the Australian dollar dropped to a six-year low against the greenback and some analysts are predicting it could drop even further in the months ahead.
For those holding off buying solar for whatever reason, such as anticipation of also installing a home battery system, acquiring a solar panel array now could be a wise move. Another benefit of installing solar now instead of waiting is the ability to saving on electricity bills sooner.
For potential energy storage buyers, it’s worth also bearing in mind that not all solar power systems will be easily upgradeable to incorporate batteries. It’s more than just about the components – positioning and wiring are also critical. Few installers in Australia currently have this knowledge; so it’s important to determine if a potential provider has the required skills to install a battery-ready system.
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