Everything You Need to Know About Small-Scale Technology Certificates For New Solar System Installations

You may have heard the term STC, which stands for Small-scale Technology Certificates. These refer to the government rebate or contribution any time a new solar system is installed. Even though they are mainly intended for residential solar systems, which tend to vary from 3 to about 15 KW, they also include commercial solar installations up to 100 KW.
In this article, we’ll teach you everything you need to know about solar STCs and how they help you save on your solar system installation.

What are Small-scale Technology Certificates?

Small-scale Technology Certificates are part of an Australian government initiative designed to encourage the adoption of renewable energy technologies, such as solar power, by offering financial incentives. Small-scale Technology Certificates are sometimes also called RECs or Renewable Energy Certificates but they still refer to the same government STC rebate.

Simply put, STCs are a form of tradable certificate representing the environmental benefits of generating renewable energy. When you install a solar panel system, you can earn STCs based on the expected amount of electricity your system will generate over its lifetime. The STC value determines the financial incentive.

How much money can I save with Small-scale Technology Certificates?

The number of STCs a solar system can earn depends on various factors, including:

• The system’s size (measured in kilowatts)
• Location of the installation (as solar radiation varies across different parts of Australia)
• The system’s performance (its expected output based on technology and efficiency)

The STC value fluctuates based on market conditions. For example, a 6.6 KW system is currently eligible for 63 STCs which amounts to $2394 or about 50% of the total solar system cost, which is still quite a substantial contribution.

However, as of 31/12/24 the rebate will go down as it has done each year since it was introduced and this will have a direct impact on the prices the following year. The lower the government contribution the higher the price, but this is never guaranteed as market forces play their usual role.

Who is eligible for a rebate under the Small-scale Technology Certificate scheme?

Most Perth homeowners will be eligible for STCs when installing solar. Homes that have installed a solar system and want to upgrade it after a few years are still eligible for these rebates, provided the old system is decommissioned.

It’s important to note that STCs belong to the property and if you own more than one house that will not prevent you from claiming them again for every other home your own or if you ever want to upgrade your solar system.

There are other eligibility requirements to meet including:

• Solar system size
• Solar products that are approved by the Clean Energy Council
• Whether the system meets the Australian Standards
• Using a licenced and accredited solar installer

A reputable solar company, like e-Solar, will ensure all eligibility requirements for the STC program are met.

How do I get the rebate on my new solar system under the STC scheme?

When you install solar panels, you can assign your STCs to your solar company in exchange for a rebate, which reduces the cost of your new solar system. Documentation needs to be prepared by the solar retailer / solar installation company for the client to sign at the end of the installation to confirm all the process has been completed accordingly.

Without the client’s signature on these documents, the solar retailer / solar installer cannot claim the rebate on the client’s behalf and this can be an additional element to ensure the job is done to the client’s satisfaction.

Some solar companies can be quite pushy along the process and clients just sign where they are told to without often being fully aware of what it all entails.

Unfortunately, there have been quite a number of scams whereby some retailers claimed the rebate for non-eligible properties and situations to the point that ACCC had to be involved and severely fine the culprits.

The importance of choosing a reputable solar company for solar STC rebates

One of the conditions for the STC rebate to be released is that the licenced installer signing the paperwork is actually doing the work on site. Instead on many occasions unlicensed workers finalised the installation including electrical work only for the signatory to sit in an office somewhere and sign many installations remotely or actually virtually.

This has brought about a clamp down from the Clean Energy Council, which is now also known as the Clean Energy Regulator, and a licenced installer can only carry out 2 installations a day. Time stamped pictures of the installer on site and the installed system are part of the documentation to have the STC rebate payable and a many other measures.

When there is free government money there are plenty of slick opportunists who take advantage of the loopholes and make it more difficult for everybody else. To avoid getting mixed with such situations, it is advisable that the company you want to proceed with is reputable and a simple online search should help put your mind at ease.

The same goes for how many years the business has been operating which unfortunately is another factor not to be ignored. The list of solar companies that have sprung up, raided the market and then closed down is very very long and unfortunately the same culprits keep opening and closing companies regularly knowing how to play the government and unsuspecting clients.

How long will Small-scale Technology Certificates be around for?

The number of certificates reduces every year as it has been for over 14 years and it is estimated to end around 2030. Hopefully by then the price of solar panels will be reduced to a point where no government rebate or incentive is no longer required for people to install solar systems.

Need a reliable Perth solar company? Call e-Solar Today!

Don’t get scammed on your solar system purchase by choosing a reputable solar company, like e-Solar! We’ve been servicing Perth with their solar needs for 21+ years. There’s no better team to chat to when it comes to installing a new solar system and claiming an STC rebate. Get in contact online or come and visit our office in Greenwood to meet our friendly team and learn more about saving with solar panels!