Act now! Beat the Solar Rebate Cut

Act now! Beat the Solar Rebate Cut

From 1st of January 2022, the value of the Federal Government’s solar rebate will drop by 10 percent.  On a typical 10kW system, this means a price rise of between $460 and $630 depending on where you live in Australia.

This government solar rebate – known as Small-scale Technology Certificates (STCs) – works as a point-of-sale discount.  Without it, the cost of a solar power system would be around 30 percent higher.

STCs are a terrific incentive to ‘go solar’ and they are well worth getting.  They are part of Australian’s Renewable Energy Target and have been instrumental in the dramatic increase in solar uptake in recent years.

SolarRun 01 1

But – as with all rebates – it’s best to get them when their value is highest.

So how you do make sure you get the highest rate of the STCs when you are buying solar?  How do you avoid the looming price rise caused by the Jan 1 change in the value of STCs?

The key thing to know is that you MUST have your solar power system installed before the 31st of December 2021 to qualify for the current higher levels of STCs.

That means you need to place your order for a solar power system by around mid-November to ensure there’s time for the system to be installed before the end of December.

Place your order with SolarRun by 15 November 2021 and we guarantee to lock in the price at the current higher value of STCs.

It’s really worth doing, as the cost of a typical 10kW solar system will rise by an average $550 from January 1 due to the cut in the value of STCs.

Looming pricing pressures in the solar industry caused by a trending solar panel shortage (link to my article) mean that the keen prices for solar systems are unlikely to last much longer.  That’s yet another reason to take action to ensure you don’t miss out on the excellent solar deals available at the moment.

What’s the STC Rebate Worth on a 10kW solar system?

This depends on which Zone you live in.  If you live in Zone 1, you’ll get more STCs for your system than if you live in other Zones.

oz map

Regions include:Zone rating
Zone 1Darwin, Northern NT, Townsville and top of QLD1.622
Zone 2Aussie outback inc Alice Springs1.536
Zone 3Sydney and most of NSW, Brisbane, Perth, Adelaide and SA, Northern Vic1.382
Zone 4Melbourne, Southern Vic, Tassie1.185

The more STCs your system qualifies for, the bigger the rebate you get.

So how does the Government work out how many STCs your solar system qualifies for?

There’s a straightforward calculation that’s used to work this out:

System size x deeming period x zone rating

The deeming period is the number of years left to run with the STC program.  In 2021, there are 10 years remaining, this reduces to 9 years in 2022.  It’s this reduction in the number of years that’s the reason for the fall in the value of STCs from 1st of January 2022.

As an example, if you live in Sydney you are in Zone 3.  The STC calculation if you were buying a 10kW solar power system in 2021 would be:

10 (system size) x 10 (deeming period) x 1.382 (Zone 3 Rating) = 138 STCs

This drops to 124 STCs if your system is installed after 1 January 2022 due to the fall in the deeming period to 9 years.

STCs are a tradeable commodity and their value fluctuates. At the moment, STCs are worth around $39 each.  This is great price for STCs – as they have been as low as $25 per STC in the not-too-distant past.

Going back to our Sydney example, this means that – as of right now – the value of the STC rebate on a 10kW solar system is $5,390.  But from 1 January, this falls to $4,851.  The difference is a price rise of $539.

To check out what this STC change means for you, take a look at the table below:

10kW System – Change in STC Value from 1st January 2022

Zone 1Zone 2Zone 3Zone 4
Darwin, Northern NT, Townsville and top of QLDAussie outback inc Alice SpringsSydney and most of NSW, Brisbane, Perth, Adelaide and rest of SA, Northern VictoriaMelbourne, central and southern Victoria, Tasmania
No. of STCs for a 10kW system: 2021162154138119
No. of STCs for a 10kW system: from 1/1/2022146138124107
Current spot price for 1 STC$39$39$39$39
STC Value for a 10kW system: 2021$6,326$5,990$5,390$4,622
STC Value for a 10kW system: from 1/1/2022$5,693$5,391$4,851$4,159
Change in STC value: from 1/1/2022$633$599$539$463

Don’t miss out. Order your solar system from SolarRun by 15th of November 2021 to secure your system at today’s lower prices.

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