STCs are a form of financial incentive provided by the Australian government to promote the adoption of Solar power systems. The purpose of STCs is to reduce the upfront cost of installing Solar panels and encourage more homeowners and businesses to invest in renewable energy.
The number of STCs a Solar power system is eligible for is determined by various factors. These include the location of the system, as different regions receive different amounts of sunlight, the size of the system (measured in kilowatts), and the expected electricity generation over a 15-year period.
Once a Solar power system is installed and deemed eligible for STCs, the system owner can create these certificates. These certificates can then be sold to electricity retailers, who are legally obligated to purchase a certain number of STCs each year. The price of STCs can fluctuate, depending on market demand and supply, which makes the Rebate amount variable.
Typically, the higher the number of STCs a Solar power system is eligible for, the higher the Rebate amount will be. This helps offset the initial investment cost and provides an ongoing financial incentive for the system owner.
It’s important to note that the STC Rebate is separate from other incentives such as feed-in tariffs, which are payments received for excess electricity generated by the Solar power system and fed back into the grid.
Overall, STCs play a significant role in making Solar power more affordable and accessible to Australians, helping to reduce greenhouse gas emissions and promote a cleaner and more sustainable energy future.