As we approach the new year, there’s an important change on the horizon for anyone considering solar energy in Australia. Small-scale Technology Certificates (STCs), which play a big role in reducing the upfront costs of rooftop solar systems, are set to decrease in 2025. This means that waiting too long could result in higher costs for new solar installations.

What Are Small-scale Technology Certificates (STCs)?

STCs are part of Australia’s Renewable Energy Target, designed to encourage the adoption of renewable energy and is an Australia wide subsidy. When you install an eligible solar system, you earn a set number of STCs based on your system size and location. These certificates are then sold by your installer / retailer to offset your installation costs, making solar more affordable for homeowners across Australia. Please note that adding a battery to your system will not increase the number of STCs. There are however other subsidies/government incentives available for solar batteries in NSW, VIC and SA. Links to further reading below.

Government Solar Battery Incentives

NSW Battery incentive – read more here.
Solar VIC Interest Free loan – read more here.
SA REPS VPP rebate – read more here.

How Will the STC Reduction Impact Solar Costs?

As part of a phased reduction program, the number of STCs decreases each year, reflecting the government’s expectation of solar technology becoming more accessible and affordable over time. However, in practice, this reduction can mean higher upfront costs for consumers.

Starting January 1, 2025, the STC reduction could increase the cost of a standard 6.6kW solar system by hundreds of dollars. Here’s a breakdown of what this means in practical terms:

• Higher Upfront Cost: With fewer STCs to offset installation costs, a typical solar system might cost an additional 5-10% after the new year.
  
• Longer Payback Period: Although solar is still a smart investment, the reduced rebate in 2025 will slightly extend the time it takes to recoup your investment through energy savings.

Why 2024 Is the Best Time to Go Solar

With energy prices rising, going solar in 2024 can maximize your financial benefit while securing a higher STC subsidy. By locking in your solar system this year, you can save more on your installation costs and start generating energy savings sooner.

Take Advantage of the Current STC Rate Before It’s Too Late

If you’ve been considering solar, acting before the end of 2024 ensures you can benefit from the higher STC rate. Here are a few key reasons to submit a quote today:

• Maximise Your STC Savings: More STCs mean more savings upfront, reducing your initial outlay.
  
• Beat the 2025 Rush: Many homeowners will realize the financial benefit of installing in 2024, so submitting a quote now ensures you’re ahead of the demand.
  
• Enjoy Immediate Energy Savings: With the cost of grid electricity rising, generating your own solar power is an effective way to cut costs now.

If you are thinking about getting solar – now is a great time to get a quote and get your project underway before the amount of money you will save with the STC rebate decreases as we head into 2025!

Want to read more about STCs – click here:

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