How solar rebates work.
How Do Government STC Rebates Work as a Discount on Solar Installation Costs in Melbourne?
If you’re a Melbourne homeowner thinking about solar, you’ve probably heard about government rebates that can significantly reduce the upfront cost. The Small-Scale Technology Certificate (STC) program is one of the most effective incentives in Australia, helping residents in Melbourne and beyond make the switch to renewable energy more affordable. In this blog, we’ll break down how STCs work, how they’re calculated, and how they can dramatically lower the cost of installing solar on your Melbourne home.
What Are STCs?
STCs, or Small-Scale Technology Certificates, are part of the Australian government’s Renewable Energy Target (RET). When you install a qualifying solar system, you earn a certain number of STCs based on the system’s estimated renewable energy output over its lifetime.
These certificates have a market value and can be sold to entities that need them to meet renewable energy targets. Solar installers usually manage this process on your behalf, providing you with an upfront discount that reflects the value of the STCs.
How Are STCs Calculated in Melbourne?
The number of STCs your solar system generates depends on:
System Size: Larger systems earn more STCs because they produce more energy.
Melbourne’s Solar Zone: Australia is divided into solar zones based on the amount of sunlight each area receives. Melbourne falls into Zone 4, which influences the number of STCs your system earns.
Year of Installation: The rebate decreases annually as the Renewable Energy Target approaches its 2030 phase-out date.
For example, a typical 6.6kW solar system installed in Melbourne might generate approximately 85 STCs.
How Do STCs Reduce Solar Costs for Melbourne Homeowners?
STCs effectively act as a point-of-sale discount, reducing the amount you pay upfront. Here’s how it works in Melbourne:
Step 1: Your solar installer calculates the number of STCs your system qualifies for based on Melbourne’s Zone 4 sunlight conditions.
Step 2: The installer applies a discount to your quote, equivalent to the market value of those STCs.
Step 3: The installer claims and sells the STCs, making the process hassle-free for you.
For instance, if each STC is worth $40 and your system generates 85 STCs, you’ll receive a discount of $3,400 off your solar installation cost.
How Much Can Melbourne Residents Save?
The total savings depend on your system size, the current STC market price, and your home’s energy needs. On average, STCs can reduce the upfront cost of a solar system by 30-40%. For Melbourne homes, a typical 6.6kW system might cost $10,000 before rebates but only $6,600 after the STC discount is applied.
Eligibility for STCs in Melbourne
To qualify for STCs, your solar system must:
Be installed by a Clean Energy Council (CEC)-accredited installer.
Use CEC-approved solar panels and inverters.
Be no larger than 100kW (most residential systems are well under this limit).
Why Melbourne Residents Should Act Now
The STC rebate decreases slightly every year, so the sooner you install solar, the more you’ll save. Additionally, Melbourne’s rising electricity prices make solar a smart investment that pays for itself faster through lower energy bills and feed-in tariff credits.
Maximizing Your Solar Savings in Melbourne
Melbourne homeowners can combine STCs with other government incentives, like the Victorian Solar Homes Program, which offers additional rebates of up to $1,400 for solar panel systems. This combination makes solar more affordable than ever.
Conclusion
The STC program makes installing solar panels in Melbourne more accessible by reducing upfront costs. With Melbourne’s unique solar potential and additional state-based incentives, there’s never been a better time to switch to renewable energy.
If you’re ready to start saving, contact us today for a free quote. We’ll handle the STC process and help you maximize all available rebates to ensure you get the best deal possible.
