Solar Credits are provided in the form of additional tradable certificates called small-scale technology certificates (STCs) for eligible small-scale renewable energy systems including solar photovoltaic (PV) systems.
While it is possible for owners of renewable energy systems to create and sell the STCs themselves, in practice, installers of these systems usually offer a discount on the price of an installation, or a cash payment, in return for the right to create the STCs. Householders considering installing small-scale renewable energy systems are encouraged to shop around for the best deal.
One STC is equivalent to one megawatt hour of electricity generated by your solar PV power system. The price of STCs changes according to market conditions. As an owner of a solar PV power system, you can register, sell, trade or surrender STCs for systems up to 100kW.
There are two ways you can be paid for your STCs:
1. Assign your STCs when you purchase your solar PV system to a registered agent in exchange for a financial benefit which may be in the form of a delayed cash payment or upfront discount on your solar PV panel system
2. Create the STCs yourself by finding a buyer and then selling and transferring them in the Renewable Energy Certificate (REC) Registry.
The level of subsidy will depend on a number of factors, including the location the solar system, the size of the system and the price of STCs at the time the system was installed.
Australia is divided up into various zones based on how much renewable energy can be generated by a solar panel in a given area. So the same sized system installed in Melbourne or Hobart (Zone 4) receives fewer STCs than those installed in Sydney (Zone 3) or Darwin (Zone 2) because Melbourne and Hobart have less sunshine so less solar energy is produced by your system.
The table below shows the different rebate for a similar system in various cities.
These rebates change every year and you should talk to your nearest LG installer to get the updated information or visit the Clean Energy Council website to find the rebate applicable to you.