With the recent 25% fall in value of STCs, and the looming drop in the number of STCs businesses can receive, now is the time to invest in solar, before its too late!
Solgen Energy Group is offering businesses a guarantee* until the 30th of September that all systems eligible for STCs (under 100kw) will be installed and approved by 31st December 2017.
In addition, our relationship with leading tier 1 suppliers has seen us secure preferential pricing on a range of products ensuring we are delivering economical yet quality-engineered systems.
*Offer available until the 30th September 2017. Guarantee only applicable to systems under 100kW, Each new quote generated is subject to quote approval by a sales representative. A signed purchase order must be received by the offer end date to receive guarantee.
Through the Renewable Energy Target (RET), the government issues system owners with certificates that can be traded as units of currency on the market. If the system installed is below 100kW a number of Small-scale Technology Certificates (STCs) are deemed upfront and can be used to offset as much as 40% of the cost of the solar power system.
STCs are calculated based off of the system location, and the estimated overall electricity the system will generate for a maximum of 15 years or until the RET legislation expires in 2030 – whichever is shorter. These certificates are deemed upfront as a one off at the time of installation. This means that all of these certificates can immediately be traded to offset the initial cost of the system. Because this process can be complex and time consuming, it is common practice to allocate the STCs to the system provider to sell on your behalf in exchange for a discount on the purchase price.
However, with the emergence of the Finkel Review and talks of a new Clean Energy Target (CET) there are no guarantees the current system and the same benefits will continue until 2030.
Because STC certificates are calculated based on the amount of electricity produced until 2030, this also means that for every year closer to 2030 you will receive fewer certificates and thus less of an offset against the price of the system. The number of STCs a system can receive is based off of the time of install, so for example if a 100kW system is installed and commissioned by 31st December 2017 you receive 137 certificates (up to $4,800) more than if the system is installed and commissioned after this date.
Given systems can take up to 3 months to be approved by an electricity network provider, the time is fast approaching to ensure systems can be completed prior to the end of year cut-off date.