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Power bill reduction, Rebates, Feed-In Tariffs, Financing

The 'Rebate'

When you install a new solar system on your roof, it earns some STCs (small technology certificates), otherwise known as 'the rebate'. The more panel power you put on your roof, the more STCs are earned. Perth, Brisbane, Sydney and Adelaide all earn the same number of STCs, but poor old Melbourne gets about 15% fewer STCs due to the reduced solar produced from a system in Melbourne compared to the other cities.

You can go to a very simple calculator here that gives you exactly how many STCs are created, depending on when your installation is going to happen, and where you are.

The value of each STC is not fixed. It has been as low as $18 in 2011 and as high as $40 in early 2017. At time of writing it is $35 per STC. To put that into perspective, in 2018, 6.6kW of panel power in Perth, Sydney, Brisbane or Adelaide earns 118 STCs (Melbourne 101 STCs) so at $35 each that is a discount to you of $4,130 (Melbourne $3535). It's amazing how many people think that the rebate has 'gone' !! It's also eye-opening for many Melburnians to see that they pay nearly $600 more for their solar compared to the rest of the country simply because they get a lower 'rebate'.

In almost all cases, we, and other solar companies, will buy your rebate from you by discounting the system price and then go and get our money back later by selling the STCs. Sometimes this means we lose some money if the STC price falls, sometimes we make a bit more if the STC price rises.

You can see what the current STC price is here

The STCs are ultimately purchased from the Clearing House and on the market by liable entities who are mostly electricity retailers. They each have a quota of STCs they need to buy each quarter and once bought, the STCs are cancelled and so the whole merry - go - round of creation by installing solar and cancellation once bought by the liable entites goes on. The reason the STC price can plunge is when there is a rush to buy solar that puts more STCs into the market place than the liable entities have to buy. Supply and demand. This pushes up the price of solar, which reduces the flow of STCs and over time, the price goes back up. The quota that these companies have to buy is adjusted once a year, and this mechanism also helps to push the STC price back up to the $40 ceiling, but it can take a long time.

Feed-In Tariffs refer to what you get paid for surplus power made by your solar during the day that wasn't needed at the time it was made. Your electricity retailer takes it, credits you between 7 and 14 cents and then sells it to your neighbour for between 26-40 cents, (the electricity retailers decide what your price is per unit of electricity and what you get paid for surplus solar power). Not surprisingly, everyone is waiting for solar battery prices to come down enough to get a better return on surplus solar power.

Financing solar purchases is surprisingly rare in our experience and yet we are really not sure why. Totally legit unsecured Green Energy Loans have interest rates of about 6% and setup fees of $150. The 'Interest free' deals require the retailer to load their prices by $600 or so to cover the fees charged by the financer, so in reality, you pay less and have much more flexibility going for a green loan from folks like Community First Credit Union. Cheapest way though is to put it on your mortgage.







solar4ever.com.au is the web site for Good Day Mate Pty Ltd trading as SOLAR4EVER Company registered in WA on 26th October 2008 (A.C.N.133884938)

Contact Detail :

Telephone : (08) 6102 2527
Email: info@solar4ever.com.au