The Sun slowly sets on solar incentives

When you install a solar PV system, you are eligible to receive an upfront discount to recoup some of the costs. The discount is for the monetary value of small-scale technology certificates (STCs). These STCs are for the clean energy your system will create. Simply put, the more solar panels you install, the more STCs you create, and the more money you keep in your pocket. From January 2017, this will change.

The Sun slowly sets on solar incentives perth

Here’s the deal

You have a contract for a 6.5kW solar PV system.
The contract lists 134 STCs for a credit of $5,400.00 (rounded up). This credit comes off the cost of your solar PV system.

What is the STC calculation?

kW x location x 15 years
6.5 x 1.382 x 15 =  134.74 STCs (you then times the STC number by the market value of the STCs)

kW:  The size of the solar power system.
Location:  This figure is 1.382 for Perth
15 years:  STC deeming period
You just need to add the market price for each certificate (we pay $40.00)

See a detailed example of the calculations here: Rebates and incentives for residential solar power

What changes in 2017?

The deeming period will start to reduce.
2017 = 14 year STC deeming period
2018 = 13 year STC deeming period
2019 = 12 year STC deeming period … etc.

For 2017, the calculation will look like this:

kW x location x 14 years x STC $$ value

Residential solar STCs

A 1.56kW system created 32 STCs in 2016. It will create 30 STCs in 2017.
The $1,280.00 discount will reduce to $1,200.00 in 2017.

A 3.12kW system created 64 STCs in 2016. In 2017, it will create 60 STCs.
The $2,560.00 discount will reduce to $2,400.00 in 2017.

A 5.2kW system created 107 STCs in 2016. In 2017, it will create 100 STCs.
The $4,280.00 discount will reduce to $4,000.00 in 2017.

A 6.5kW system created 134 STCs in 2016. In 2017, it will create 125 STCs.
The $5,360.00 discount will reduce to $5,000.00 in 2017.

All solar power systems between 1 and 100kW will be affected by the cut in STC value.

Commercial solar STCs

A solar PV system on a commercial business:

A 10.4kW system created 215 STCs in 2016. It will create 201 STCs in 2017
The $8,600.00 discount will reduce to $8,040.00 in 2017

A 31.2kW system created 646 STCs in 2016. It will create 603 STCs in 2017
The $25,840.00 discount will reduce to $24,120.00 in 2017

The Sun is setting slowly

As you can see, it’s a slow and steady reduction in the STC monetary value.
If you want to install a solar power system before January 2017, you will need to get your skates on.

 

The Sunday Energy Team

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