Why Solar | STC's & REC's

The value of STC’s change according to market conditions. So if the value of an STC increases you can retire your STCs and if the spot prices are low you can wait for the value to increase.

For PV systems the federal government funded financial incentives available are as follows:
• Renewable Energy Certificates (RECs)
• Small scale Technology Certificates (STCCs)
• Feed‐in tariffs (grid connections)

Australian Government cash rebates are no longer available for solar panels. RECs are the only financial incentive offered by the government and are included in the cost of your system. The Number of RECs assigned to a solar system depends on the size and location of the system.
A feed-in-tariff is a rate paid or credited to a system owner for electricity fed back into the power grid from a designated renewable electricity generation source.
Electricity retailers are required to pay at least $0.60 per KWH produced by the solar panels installed before various date. If it is fed to the grid, which is at a premium compared what the electricity retailers sell their conventional electricity (typically $0.20 per KWH). This higher tariff is called the premium feed‐in tariff.
Current feed-in tariffs now vary from zone + 8 cents/KWH.

There are currently two major forms of assistance given for solar power systems by the Australian government. These are Small scale Technology Certificates (STC’s) and Feed-in Tariff incentives.
STC’s are a tradeable commodity attached to eligible installations of renewable energy systems (including solar panels, solar water heaters and heat pumps). Under the Federal Government’s Small-scale Renewable Energy Scheme (SRES), when you install an eligible system, you may claim a set number of these STCs.
A feed-in-tariff is a rate paid or credited to a system owner for electricity fed back into the power grid from a designated renewable electricity generation source.

Small-scale Technology Certificate(STC)/ Renewable Energy Certificate(REC) are certificates that are the only direct federal incentive issued, in order to discount the upfront cost of installing solar panels by making the purchase of electricity mandatory by the electricity retailers and other liable parties (large users of electricity) under the RET legislation. The RET seeks to ensure that approximately 20% of Australia’s electricity generation comes from renewable sources by 2020 .They are created and traded through the renewable energy market.

Depending on solar zones a typical 1.5 KW PV system can get from 18 to 36 STCs. One STC per MWhr produced by solar panels over 15 years.

The Australian government has fixed the price of STCs at $40 but the actual value of an STC varies from day to day. STCs are traded on the STC market. As of October 15, 2013, one STCs can sell between $37 to $38.

Yes, STC can be held and traded. STCs mean Small Technology Certificate and it can be created when approved solar panels are installed. if we have solar panels. Firstly we should find a buyer and then, sell and transfer them in the Renewable Energy Certificate (REC) Registry.

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