There is a lot of misinformation flying around when it comes to solar and the rebates on offer. Essentially, these ‘deals’ make it more affordable to get these clean energy systems installed on your property.
You may have read about how these rebates are being cut. While there have been changes made for 2021, they don’t necessarily mean that you are going to pay more for solar installations tomorrow than you would today.
The first thing to understand is what Small-scale Technology Certificates (STCs) are. This is the current Australian Solar Rebate that is calculated at the time of installation and is paid to the installer to reduce the cost the consumer pays for the system. The number of STCs given to the installer depends on a number of factors, including geographic location. The more you have, the less you pay.
The short, simplified answer is that these STCs are likely to go down in the near future. That will lead to less money taken off the installation costs for your solar system overall. But that doesn’t necessarily mean that you will pay more.
STCs and rebates you need to know about
The major change lies in what is called the ‘deeming period’, which estimates the assumed lifetime of the solar system you are having installed. Every year until 2030 a year is being dropped off this deeming period which impacts the number of STCs you will receive when you have a new solar system installed.
In 2020, for example, that deeming period was 11 years and in 2021 that has dropped down to 10 years. This means you will be receiving fewer STCs the longer you wait because this deeming period will continue to drop until it is zero in 2030.
While this sounds like a big thing, it is important to consider the cost of a solar power system is also falling every year. The technology is getting better and these panels can be manufactured at much more affordable rates. This trend is likely to continue over the next decade, leading to a drop in the deeming period that will roughly be in line with the decline in solar power pricing.
In saying that, you don’t want to wait until 2030 to install solar panels. The deeming period will be slashed to nothing and we don’t know what the future holds for rebates. It is best to install now with reliable technology and a locked-in deeming period to get maximum bang for your buck. In short, you are guaranteed to get a healthy volume of STCs today, but that may get cloudier as each year goes by. It could – and should – balance out in line with the price of solar system installations, but you are better off grabbing the certainty on offer right now.
Get three free quotes now on a solar power system for your property with Energy Matters.