The financial incentive for solar power systems is based on STCs which stands for Small-scale Technology Certificates. These STC’s can be created when a solar power system using eligible solar panels and solar inverters are installed by accredited solar installers. The number of STC’s created is determined by the size of the solar power system but it is also affected by which year it is installed in.
Solar power installation this year or next?
Every year until 2030 the amount of STC’s that can be created by installing solar panels will be dropping due to the each year being a year closer to 2030. Currently in 2017 we are eligible for a 14 year deeming period on STC’s due to the year 2030 ending 14 years away, so in 2018 the deeming period will drop to 13 years as 2030 creeps closer.
What does the STC deeming period mean to me?
Effectively what this all means to you is that if you hold off on installing a solar power system till next year you will be paying more. How much more depends on how large the solar power system is. For example a basic 5kW solar power system will currently be eligible for the STC financial incentive of $2,640 if installed in 2017, however come 2018 that incentive will drop to $2447.50. So exactly the same solar power system installed in 2018 will likely cost you an additional $192.50, and the larger the solar power system the greater the additional cost will be. Have a play with the following calculator to see what the difference will be for your solar power system.
*Solar STC value is based on market value, hence is subject to change without notice.