Technically, the word ‘rebate’ is incorrect when applied to the Federal Government incentives known as renewable energy certificates. They are an entitlement as seen here in the following quote from the Clean Energy Regulator’s website.
Under the Small-scale Renewable Energy Scheme, eligible small-scale renewable energy systems are entitled to a number of small-scale technology certificates (STCs).
The number of small-scale technology certificates that can be created per system is based on its geographical location, installation date, and the amount of electricity in megawatt hours (MWh) that is:
- generated by the small-scale solar panel, wind or hydro system over the course of its lifetime of up to 15 years, or
- displaced by the solar water heater or heat pump over the course of its lifetime of up to 10 years.
As a guide, one small-scale technology certificate is equal to one megawatt hour of eligible renewable electricity either generated or displaced by the system.
The Renewable Energy Target is supported by an online registry system, called the REC Registry, which facilitates the creation, validation, auditing and transfer of small-scale technology certificates.
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.
There are two distinct types of renewable energy certificates, STCs for systems under 100kW and LGCs for systems above.
The nominal value of an STC is $40 however you may have to wait some time for a buyer. Usually the solar retailer will offer you a discount almost equivalent to the $40 per STC but including a small handling and creation fee. Depending on the demand for STCs, the price for an STC could vary between $35 and $38. The speed at which the STCs pass through the ‘clearing house’ dictates their market price.
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.
To be eligible for small-scale technology certificates, small generation units (including solar photovoltaic panels, wind turbines, and hydro systems) must:
- be installed no more than 12 months prior to the creation of certificates, and have its panels and inverter, listed on the Clean Energy Council list of approved components
- meet Australian and New Zealand standards
- use a Clean Energy Council accredited designer and installer and meet the Clean Energy Council design and install guidelines
- comply with all local, state, territory and federal requirements, including electrical safety, and
be classified as small-scale, and a:
- solar panel system that has a capacity of no more than 100kW, and a total annual electricity output less than 250MWh.
Energis Pty Ltd relieve you of all the hassles associated with the creation of STCs. When you purchase a solar system from us, all the paperwork and negotiations are handled by our office and you are awarded your entitlement as a point-of-sale discount off the price of the system.
Just call on 1300 782 217 to arrange an obligation-free appraisal.