So what is an STC? It stands for “Small Scale technology certificate.” Australia has a Renewable Energy Target (RET) where we are looking to supply a portion of our power from renewable sources. So polluters are required to buy an amount of STC’s to offset there pollution this helps stimulate the uptake of clean energy like solar.
Not so long ago the Federal government decided to reduce our Renewable Energy Target, from 41,000 GWh to 33,000 GWh by 2020. So what? I hear you say. Well what this means is that we are going to hit our renewable energy target sooner than previously expected.
We are busy installing solar and so are many other companies, its my gut feel that one day sooner rather than later we will get an announcement to say “hey great news everybody we have reached our target for small scale renewable energy”. When this happens and there are no more STC’s the price for a 5kW solar system will rise by about $4,000, the other thing is that before that happens there will be an oversupply of STC,s on the market this could see the price of STC,s crash before they are gone.
So the moral of the story is if you are thinking about solar there has never been a better time to act than right now.