Small Scale Technology
Certificates (STC's)

If you have installed a solar system in your home, you’re probably aware of the Small-scale Technology Certificates (STCs) scheme. But if you haven’t had solar panels installed yet, or if you’re thinking about getting them but not sure how to go about it, there are a few things you need to know about STCs first.

This article will take an in-depth look at small-scale technology certificates and why they benefit Australian homes and businesses.

What is a Small Scale Technology Certificates (STC)?

The Australian Government has established a voluntary scheme that allows companies to generate clean energy through small-scale renewable technologies like solar panels and wind turbines. As part of this scheme, they are awarded certificates for each unit of electricity produced from their renewable energy source, known as Small-scale Technology Certificates (STCs).

STCs are the Australian Government’s way of assisting with the development of new technologies in the renewable energy sector. These are used to help reduce CO2 emissions from electricity generation. They can be traded between businesses, allowing them to lower their carbon footprint, and your company can also use them to meet mandatory requirements.

You can claim an STC for any eligible renewable energy technology that generates electricity. The more STCs you have, the more your business qualifies for tax incentives and other rebates.

How do STC's work?

STCs are issued to solar power system owners by the Clean Energy Regulator based on how much electricity they generate. These tradable certificates can then be sold on an open market to people who want to use them for their installations or energy suppliers as part of their renewable energy portfolio standards obligations.

An STC represents one-megawatt hour (MWh) of eligible renewable electricity from an accredited generator registered with the Clean Energy Regulator. When you buy STCs, you’re supporting local businesses that have invested in clean energy technology and helping reduce your carbon footprint.

STC prices are determined by market demand when you sell your certificate. The value of your certificate will depend on where you live and whether there is more supply than demand at that time. With more demand than supply, selling your certificate becomes easier as buyers pay more to get hold of them.

Who can create STC's?

Developers can create STCs by generating renewable energy. It includes solar photovoltaic (PV), wind and hydroelectricity generators, or using biomass to produce heat or power. You can buy them from a developer as an incentive for making renewable energy.

You can also sell your entitlements directly to someone who wants them, such as retailers selling green energy options to customers. At the same time, they continue to supply regular grid power through their existing contracts with the retailers’ suppliers or generators with surplus capacity looking for ways of monetising their assets while managing peak demand and avoiding costly investment in extra infrastructure.

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How much are STC's worth?

The Clean Energy Regulator sets the value of each STC based on how much your clean energy project saved carbon dioxide. When you buy an STC, it’s like buying a right to pollute, and part of your money goes towards paying for cleaner air in Australia.

For example, if there’s a 10% premium on the wholesale electricity market price of $100/MWh and you generate 100kWh of electricity that year, then your STC entitlement would be worth $10kWh x 10% = $1kW, for which you could sell each certificate at auction or privately with another party.

Can I use an STC on a small-scale renewable energy system if I rent my home?

You can claim STCs for small-scale renewable energy systems if you rent your home or lease it. However, the STC will be issued in the property owner’s name. In this situation, you need to ensure that your landlord knows what you’re doing so they don’t object.

Are there time limits for when small-scale renewable energy systems can be installed?

If you purchase a small-scale renewable energy system, such as solar system or a wind turbine, and install it within 12 months, you can claim STCs for that system. If you buy the components for your renewable energy technology and have them installed later, but within 12 months of purchase, STC claims cannot be made for those items.

Are there other rules about claiming STCs for buying or installing a small-scale renewable energy system?

STCs can only be used for a small-scale renewable energy system. So, if you want to claim the STC for your gas hot water system, you won’t be able to do so.
You must buy or install the system before claiming STCs. In other words, if someone else buys a solar hot water system and then installs it on your roof and claims the rebate, this isn’t allowed under current rules.
Claiming STC needs to happen within 12 months of installing the system from when all parts are in place.

Can the Clean Energy Regulator revoke an STC from me if it turns out my system isn't eligible for STCs after all?

An STC can be revoked if it is found invalid or discovered that your installation was not eligible for an STC in the first place. If your system has already been approved and an STC issued, revocation would only occur after the Clean Energy Regulator audit your system.

Who are eligible for rebates when installing solar panels?

All homes in Australia are eligible for rebates when installing solar panels. The refund amount depends on the size of the solar panel system and is based on its STC value. In most cases, you will pay a discounted cost for your solar system, and it is simply a matter of waiting until you receive your rebate from an electricity retailer, which may take up to 6 months.

Solar panel systems must be installed by licensed installers registered with ARENA (Australian Renewable Energy Agency) or by accredited installers listed on the Clean Energy Council website as having passed a skills assessment test in solar installation. Australian Energy Upgrades is a proud Clean Energy Council Approved Solar Retailer.

What are the benefits of STCs?

There are several benefits associated with using small-scale technology certificates.

Financial savings and rebates

STCs can be sold, bought and traded. They are a form of carbon credits that can offset carbon emissions by investing in renewable energy projects. You could use the STC to offset the cost of solar panels or other small-scale technologies like bio-gas generators, rainwater tanks and heat pumps.

You can save money by utilising solar energy.

Solar technology is an intelligent choice for reducing your electricity bill and saving money, reducing your reliance on the grid. It’s also an excellent investment in the future of our planet. It helps reduce carbon emissions and creates clean energy and jobs for local people.

Clean energy source

Renewable energy is a clean, renewable, and sustainable fuel source that reduces reliance on fossil fuels. Using clean energy sources also lowers carbon emissions contributing to global climate change. In addition, it helps reduce pollution created by burning fossil fuels for electricity generation and transportation purposes.

Small Scale Technology Certificates

Small-scale technology certificates are a great way to help the environment and save money on your energy bills. It’s also beneficial because you don’t have to worry about buying large amounts of expensive equipment that may not be compatible with your home or office. Investing in small-scale technology certificates will help protect our planet while also helping you save money on electricity costs.

If you have questions about STCs or want to know more about installing solar panels for your home or business, Australian Energy Upgrades is here to help you. Feel free to call us at 1300 996 917 or send an email at [email protected].

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