The Solar Rebate, in the form of STCs, serves as a financial incentive for individuals or businesses to invest in renewable energy systems, such as Solar panels. The amount of STCs generated depends on the size of the system and the amount of renewable energy it is expected to produce over a specific period.
Once the system is installed and operational, the owner can create STCs through the government’s online registry. The number of STCs generated is calculated based on the estimated amount of renewable energy the system will generate over a designated period, usually 15 years.
Electricity retailers in Australia are required by law to purchase a certain number of STCs each year. This creates a demand for STCs in the market. The price of STCs can vary depending on supply and demand dynamics. Typically, the price of STCs is higher when demand exceeds supply, and vice versa.
Owners of Solar systems can sell their STCs to electricity retailers or other market participants to recoup some of the upfront costs of installing the renewable energy system. The sale of STCs effectively reduces the overall cost of installing Solar panels, making it more financially viable for individuals and businesses to adopt renewable energy technologies.
It is important to note that the Solar Rebate and the value of STCs can change over time as government policies and market conditions evolve. The government periodically revises the number of STCs required to be purchased by electricity retailers, which can impact the value of STCs. Additionally, changes in government policies or market dynamics can influence the overall availability and demand for STCs in the market.