The solar industry benefits from a government incentive called the Small-scale Renewable Energy Scheme. It provides an incentive to install eligible renewable energy systems through the creation of STC’s or Small-scale Technology Certificates. Under the Small-scale Renewable Energy Scheme, households and businesses with solar power systems up to 100kW, receive Small-Scale Technology Certificates (STCs) for every megawatt hour of renewable energy generated or displaced by an accredited solar panel.
Like shares, STCs have a trading value, which fluctuates depending on supply and demand. Most solar customers choose to exchange their STCs for an upfront discount (rebate) on their PV system. The amount of your rebate will depend on the trading value of the STCs at the time of your solar investment.