The solar rebate STC system is an incentive program to encourage the use of solar energy in both residential and commercial properties in Australia, for systems under 100 kW. Here’s a breakdown of how it works:

• Point of sale discount: When you buy a solar energy system, the rebate is usually applied immediately as a discount at the point of sale, which lowers the price you pay upfront.

• Value calculation: The discount you get depends on two things: the size of your solar system (the total kilowatts of your panels) and the current market value of the STC when you make your purchase.

• Tradable commodity: STCs work like stocks in the stock market—they can be bought and sold, and their prices can go up or down quickly.

• Price stability: While the value of STCs can change, they have been pretty stable over the past few years. However, there have been times when the rebate value has changed a lot within a single year.

• Annual reduction: Each year on January 1st, the number of certificates you can receive goes down, and this will continue until 2030. So, the longer you wait to buy your solar system, the smaller the rebate you’ll receive.

• Geographical zones: Your rebate also varies depending on your location, which is determined by your postcode. Australia is divided into 5 different solar rebate zones, and each zone has a different rebate rate.

• Simplifying the complex: It might sound complicated, but during a consultation with Inspire Energy, they will explain everything clearly so you understand exactly how it will work for you.

Large Scale Generation Certificates (LGCs) are a form of currency in Australia’s renewable energy market. They’re essentially tradable certificates issued for each megawatt-hour of clean electricity produced by accredited solar farms.

Businesses can buy LGCs to fulfill their mandatory renewable energy targets or for voluntary sustainability goals. This system incentivises investment in large-scale solar power by allowing companies to offset their carbon footprint and potentially reduce energy costs, while supporting the growth of clean energy in Australia.

Here’s a breakdown of how it works:

• LGC Creation: For each MWh of clean electricity produced, one Large Scale Generation Certificate (LGC) is issued. This essentially links clean energy generation with a tradable certificate.

• LGC Market: Once issued, LGCs become tradable on a designated energy certificate trading market. This allows various entities, primarily electricity retailers and businesses with high energy consumption, to participate in the program. They can buy and sell LGCs depending on their needs and market conditions.

• Meeting Targets: The Australian government mandates Renewable Energy Targets (RETs) for certain entities, often electricity retailers. These targets specify the percentage of electricity they must source from renewable sources. Businesses with RET obligations can purchase LGCs to represent their contribution towards achieving their renewable energy targets.

• Voluntary Sustainability: Beyond mandatory RETs, companies with a commitment to sustainability can also choose to buy LGCs voluntarily. This allows them to demonstrate their environmental responsibility and contribute to the growth of renewable energy in Australia. Purchasing LGCs showcases their efforts to reduce their overall carbon footprint.

• Benefits: Beyond mandatory RETs, companies with a commitment to sustainability can also choose to buy LGCs voluntarily. This allows them to demonstrate their environmental responsibility and contribute to the growth of renewable energy in Australia. Purchasing LGCs showcases their efforts to reduce their overall carbon footprint.

• Small-scale Technology Certificates (STCs) are a financial encouragement aimed at fostering renewable energy uptake in Australia. This rebate diminishes the initial investment required for setting up eco-friendly hot water solutions like heat pump hot water systems. The amount you can receive is based on the hot water system that you are installing.

• Character of STCs: Each STC is an exchangeable voucher that reflects the quantity of electricity, in megawatt-hours (MWh), saved annually by your eco-friendly energy system, for instance, a CO2 Heat Pump Hot Water System.

• The STC rebate gives you a price reduction on your eco-friendly hot water system purchase. In essence, they serve as a kind of discount, though the government doesn’t actually dispense this money directly. Rather, companies in the fossil fuel sector are obliged to purchase these vouchers, affording you a markdown on the cost. So in summary – STCs are offered as a point of sale discount.

• Qualification and redemption process: Your solar hot water or heat pump hot water installation needs to satisfy specific standards to qualify for STC discounts. Fortunately, the redemption process for these discounts is usually managed by Inspire Energy, so as the buyer, you typically aren’t required to handle the redemption yourself. If we are selling you a hot water system as supply only, you will need to claim the rebate yourself. Inspire Energy can offer some guidance.

• Note that the precise savings and the count of STCs you can accumulate depend on your system’s type, its energy-saving performance, and your home’s location. A discussion with our energy consultant can provide a more detailed insight into the specific advantages STCs can offer for your hot water system.