Not Yet on Solar, Queenslanders? Your Potential STCs Savings Decrease on Jan 1

STCs Annual Reductions Mean Less Upfront Savings Next Year for New Installations (UNLESS!)

As the year comes to a close, there’s more than just the holiday season to look forward to—there’s also an important deadline fast approaching that could affect the cost of your solar investment. If you’ve been thinking about making the switch to solar energy in Queensland, now is the time to act.

Starting January 1, 2025, the value of Small-scale Technology Certificates (STCs) will decrease, impacting the overall cost and financial benefits of installing solar power systems. 

This reduction in STC value means that if you want to maximise your savings and lock in the current rebate rates, you need to act fast. 

At SnapSolar, our solar installers are providing a unique offer: as long as you book your solar project before December 15, 2024, we’ll honour the value of the 2024 STC rates (giving you a greater upfront discount on your installation).

Does the jargony term ‘STCs’ send your mind spinning? If you haven’t heard of STCs or the Small-scale Technology Certificates scheme before, it’s all good. We’ll break down everything below.

What are STCs and Why Do They Matter?

STCs, or Small-scale Technology Certificates, are part of Australia’s Small-scale Renewable Energy Scheme (SRES), designed to encourage the installation of renewable energy systems like solar panels. Each STC represents the environmental benefit of generating clean energy and can be redeemed for a financial rebate, thereby reducing the upfront cost of your solar system installation.

Every year, the value of STCs decreases by about 4-5%, a process known as ‘STC reduction’. 

Why does the value of STCs decrease every year?

This decrease is part of a planned phase-out, where the rebate will gradually reduce until it is eliminated completely by 2031. That means the value of the rebate you receive for your solar system will be lower in 2025 than it is in 2024, which in turn increases the cost of your solar system.

The key takeaway here is simple: 

If you want to maximise your solar savings, you need to act before December 15, 2024. 

After that timeframe we can’t assure you’ll be locked in for the 2024 STC value. On Jan 1, the 2025 STC value will apply, and you’ll see the cost of your system go up.

Business owners are also able to take advantage of STCs and this unique offer at SnapSolar. 

How STCs are Calculated

Based on Expected Emissions Offset Before End of 2030

Small-scale Technology Certificates are calculated based on the expected output of the solar system by (MWh) megawatt-hour within the years that remain of the Small-scale Renewable Energy Scheme (end of 2030). 

This remaining time span is what the solar industry calls the ‘Deeming Period.’

Based on Where You’re Located

There is a Postcode Zone System that provides a rating for what value each STC is worth. 

Queensland contains postcodes that fall under Zone 1, Zone 2 and Zone 3. 

Postcode Zone Areas:

Zone 1: 1.622 Rating

Zone 2: 1.536 Rating

Zone 3: 1.382 Rating

Zone 4: 1.185 Rating

Prices fluctuate based on their market value

STCs are sold on the open market and may occasionally fluctuate in price based on how in demand they are.

Related: Who buys STCs?

Certain ‘legal entities’ exist in Australia that are legally obligated to offset their carbon emissions by purchasing STCs or LGCs (large-scale generation certificates) and surrender them to the Clean Energy Council every year. 

This is all in part of Australia’s commitment to the Paris Climate Agreement to meet net zero by 2050, which has been given the formal organisational name ‘Renewable Energy Target’ or RET for short. 

How the 2025 STC Reductions Affect Your Solar Investment

The STC value is directly tied to the amount of energy your solar system is expected to generate. Larger systems produce more energy, resulting in more STCs and a greater rebate. Additionally, the location of your installation also plays a role, as areas with more sunlight, like those in Mackay, Queensland, generate more STCs.

However, regardless of your system size or location, the STC value will be lower after January 1, 2025. This means that even if your system is installed early in the year, you’ll receive fewer certificates to offset the cost. For example, a typical 6.6kW solar system could cost an additional 5-10% more if you miss the 2024 STC value.

Here’s what this means in practical terms:

• Higher Upfront Cost: With fewer STCs available in 2025, the rebate you receive will be smaller, meaning your initial investment will be higher.
• Longer Payback Period: Solar is still a great investment, but the reduced rebate in 2025 will mean it takes a little longer to recoup the costs through energy savings.

Why Waiting Could Cost You

Many solar companies will make you rush to secure the 2024 STC value, offering limited spots for installations in December. This “first come, first served” approach can leave you scrambling for a spot, only to miss out on the rebate if you’re not quick enough.

But at SnapSolar, we believe in making the process easier for our customers. We are offering you the opportunity to lock in the 2024 STC value—even if your installation is booked for 2025—as long as you book your solar project with us before December 15, 2024. 

This gives you more time to plan your installation without the pressure of completing it before the new year.

What Happens If You Miss the Deadline?

If you don’t take advantage of the 2024 STC value, your savings could be significantly reduced in 2025. The current STC value in Queensland is based on the number of certificates available under the current scheme, which decreases every January 1. 

By securing your booking before December 15, 2024, you can avoid paying hundreds of dollars more for the same system in the new year and not be in a rush with finalising the details of your solar system or installation either. 

You may still be able to get the 2024 STC value after the date if your installation takes place within 2024, but availability applies.

Missed Out?

If you do happen to miss out and are on this article later after the date though (oops!). It doesn’t mean it’s too late to go solar. As the saying goes, the best time to start something is sometimes 1, 3, 5, etc years ago. The next best time is now. Energy bills in Queensland are expected to continually rise each year, and by an estimated 20% for the 2024-25 financial year.

A solar switch can save you thousands. 

Watch some of our client testimonials to see just how much we’ve saved our clients. 

How to Secure Your Solar System with the 2024 STC Value

To ensure you lock in the maximum rebate, simply get in touch with SnapSolar today. Here’s how it works:

1. Reach Out: Contact our team at SnapSolar and let us know you want to take advantage of the 2024 STC rebate.
2. Book Your Installation: Schedule your solar installation before December 15, 2024. Even if your installation takes place in early 2025, we’ll honour the 2024 STC value for your project.
3. Enjoy Maximum Savings: By securing the 2024 value from the solar energy rebate in Queensland—you’ll enjoy a reduced upfront cost, faster payback, and long-term energy savings.

At SnapSolar, we pride ourselves on offering solar rebates in Queensland that are straightforward, transparent, and designed to benefit you in the long run.

Don’t Wait—Act Now to Maximise Your Savings

As the clock ticks down to the new year, the opportunity to maximise your solar savings is slipping away. The STC reduction is inevitable, but you don’t have to be caught by surprise. By acting before December 15, 2024, you can make sure that you’ve locked in 2024 solar power rebates in Queensland and start enjoying the benefits of solar energy without the added cost.

Whether you’re a homeowner or a business owner in Queensland, now is the best time to invest in solar. With the rising cost of electricity and the financial incentives available through the Small-scale Renewable Energy Scheme, there’s never been a better time to make the switch to renewable energy.

Get in touch with SnapSolar today to secure your spot and maximise your solar savings before the new year!

Contact SnapSolar now and lock in the 2024 STC rebate in Queensland—before it’s too late!

Frequently Asked Questions

What is STC Value?

STC value refers to the monetary worth of each Small-scale Technology Certificate (STC). 

These certificates are issued under the Small-scale Renewable Energy Scheme (SRES) and act as a rebate for installing renewable energy systems like solar panels. The value of STCs is determined by the market but typically fluctuates depending on supply and demand. The higher the STC value, the greater the savings you receive on your solar installation.

Who Sells the STCs?

Once your solar system is installed and operational, you or your installer can sell the STCs. Most solar installers manage the process for you, and it’s what we do here at SnapSolar. We’ll apply for the STCs on your behalf and either sell them directly to a third-party purchaser or use them to reduce the upfront cost of your solar installation. 

The STCs are usually sold to companies that are obligated to meet renewable energy targets. Your installer will ensure you benefit from this process as part of your overall solar package.

How to Calculate STC Value?

The STC value is calculated based on several factors, including the size of your solar system, the location of your installation, and the deeming period. The deeming period is the number of years left until 2030, when the Small-scale Renewable Energy Scheme (SRES) will end. Here’s a basic formula to calculate the number of STCs your system can generate:

System Size (kW) × Deeming Period (years) × Postcode Zone Rating = Number of STCs.

This number of STCs is then multiplied by the current STC value to determine your savings.

When Will the Small-Scale Renewable Energy Scheme End?

The Small-Scale Renewable Energy Scheme (SRES), which issues Small-scale Technology Certificates (STCs) for solar panel installations, is set to phase out by 2030. 

Every year, the number of STCs available for new installations decreases due to the reduction in the deeming period, which represents the number of years until 2030. As the scheme is gradually phased out, the STC rebate value will decline each year, meaning the upfront savings for solar installations will be lower. Therefore, if you want to take full advantage of the current STC value, it’s important to install your solar system as soon as possible.

Are STC Values Different by State and Suburb?

Yes, STC values can vary depending on the state and suburb where your solar system is installed. However, it’s not a ‘state’ differing system. Your STC values are determined by where you are geographically, through what the SRES calls the ‘postcode zone system,’ which is used to calculate the number of STCs generated based on the solar system’s expected output. 

Australia is divided into several zones, with more sunlight exposure in some areas (like Queensland) compared to others (like Melbourne or Tasmania). Postcode Zone 1, which includes regions like Northern and Central Queensland, typically generates more STCs than areas in Postcode Zone 4, which have less sunlight. Therefore, while the STC value itself (the monetary worth per certificate) remains the same across states, the number of STCs generated can differ based on location.

Are STC Values in Queensland Worth More?

Yes! Compared to other states, we’re in the highest zone. 

While the STC value (the monetary worth of each certificate) does not change by state, the number of STCs you can generate from solar systems in Queensland are likely higher comparatively due to the region’s greater exposure to sunlight. This means that although the value per STC is the same across Australia, you can potentially receive more STCs in Queensland, resulting in greater upfront savings for your solar installation. 

Additionally, Queensland is in Postcode Zone 1, the highest zone for STC generation, meaning you’ll likely receive more STCs compared to installations in less sunny regions.

What is the Current Value of STC in Queensland?

The current value of STCs in Queensland can fluctuate based on market conditions. As of now, the value per STC for a Zone 3 Postcode is around $38 to $40, but this can change over time. In 2025, the value will drop, reducing the rebate amount for new solar installations. To ensure you get the best savings, it’s crucial to act before the rate changes.

(Queensland is made up of Zone 1, Zone 2 and Zone 3 postcodes, so it’s important to check your area first to estimate the value). 

Where Can I Find all the Current Value of STCs?

You can find the current value of STCs through the Clean Energy Regulator website, which regularly updates the STC price. Additionally, your solar installer or retailer will provide you with the most up-to-date STC pricing when you receive your solar quote. For more accurate calculations and guidance on the best time to install your solar system, your installer will also guide you on how to lock in the current STC value before any reductions.