The prices of solar panels have dropped because of many new technological advances in manufacturing, making them far cheaper to produce. They are now becoming affordable for the average Australian family. A great investment, every time an electricity bill arrives, mine is always in credit and that alone is a great feeling never having to pay for electricity again. But besides the cost of a system, you also need to understand another factor that affects the prices of solar panels in Australia. STCs (Small-scale Technology Certificates), have you heard of them? These used to be lumped into one as REC’s (Renewable Energy Certificates) but now for households we have STC’s which are issued as a discount off the retail price for eligible renewable energy system or in some cases you the new owner will make a claim for monetary satisfaction after your system is installed. This is something you must be clear on when receiving quotes. Does your system come with or without the attached STC’s as the difference is $000’s.
To keep it simple, you have chosen a solar retailer will provide you with a fixed quote of your out-of-pocket price based on the current market price of STC’s, and once your paperwork is complete will then sell them to the STC clearing house or open markets to reclaim the discount you were given.
The number of STC issued is determined by the system output and is government by the STP or Small-scale Technology Percentage under the Office of Renewable Energy regulator (ORER).
The STC is an open market, just like the share market and works the same with highs and lows. Having a quote from a retailer that takes into account the price of the STC’s allows for an element of protection for the buyer thus holding the retailer accountable to the discount quoted you.. Even if they amount of rebate they can claim may have greatly reduced over the weeks it takes for the paperwork to be completed. It is always good to clarify ‘how much’ the retailer has calculated and deemed the worth of your STC’s to be as past experience has shown they have a tendency to err on the side of caution, some greater than others. This is why solar retailers need to monitor the prices they are quoting on a regular basis.
In the year STC prices have hit lows under $20 mainly due to the large number of systems in Australia awaiting installs. Fortunately for retailers and purchasers alike, with the decrease in sales since the solar multiplier rebate was reduced on June 30t last year, a gradual readjustment has seen prices finally rebound to $31.60, and have slightly dropped back again but that is just the fluctuating market.
This increased value of STC’s should make a significant difference in the quoted retail prices of solar panels system Australia wide, meaning reductions up to $1000’s depending on the size of the system you are buying.
So it’s great news for people wanting to free themselves from rising electricity prices by making the switch to solar power………right now they will be more affordable upfront, which will make your payback period shorter (5-7 years maximum) and the pure profit period longer!


