The Cost of Solar Panels Per State in Australia

The cost of solar panels in Australia differ depending on which state you are living in. This is because of the Small-scale Renewable Energy Scheme. This scheme gives out Small-scale Technology Certificates (STCs) to eligible renewable energy systems (read more: http://www.cleanenergyregulator.gov.au/RET/Scheme-participants-and-industry/Agents-and-installers/Small-scale-technology-certificates), which differ for every location.

What’s the Difference of STCs from Solar Rebates? Is this an additional discount?

The answer is they are the same. In the solar energy industry, STCs are more popularly known as “solar rebates,” because the term is easier to remember and understand. Although despite the term, solar rebates are more of a discount than an actual rebate because STCs actually reduce the price of your renewable energy system and not give you the money that you spent for it back. More often than not, the advertised prices of solar installers are already “after rebate” prices.

The Price of Solar Panels Before Rebates

Solar panel systems before the solar rebate depends on your installer. On average, they would cost around $3,000 – $10,000 for a regular household but could go higher depending on how much your monthly electricity consumption is. The bigger your house, the more energy you use, the more solar panels you need.

Calculating Solar Rebates

According to the Clean Energy Regulator, under this scheme, “the number of STCs you are eligible for are calculated based on system location, installation date, and if they are created over one or five years, or a single maximum deeming period.”

Normally, you no longer have to worry about this because like we said earlier, advertised prices of solar panel systems are already after rebate prices. Which means most installers are already the ones who process this for you and you no longer have to do anything aside from pay and wait for your solar panels to be installed and start using them.

But for your better knowledge, if you want to make sure that your solar installer is not scamming you, or if you are simply just trying to do some research, here’s how you can calculate the amount of discount you can get for a solar panel system inside your state:

“Zoning”

In Australia, there are different “ratings” per “zone” which is based on how much renewable energy a solar panel can be generated in a certain area. Australia is divided into a total of 4 zones:

  • Zone 1 – 1.622
  • Zone 2 – 1.536
  • Zone 3 – 1.382
  • Zone 4 – 1.185

To know which zone your location is under, look for your postal code here (press ctrl + F if you’re using a windows computer or command + F if you’re using a MacOS, then type in your postal code): https://www.energymatters.com.au/wp-content/uploads/2014/11/rec-zone-calculations.pdf

Understanding Deeming Periods

Deeming periods are the estimated amount of years your renewable energy system is capable of creating, well, renewable energy. The Clean Energy Regulator states that deeming allows them to have an efficient method for allocating a meaningful number of STCs without the administrative burden of metering each individual system’s output.

Up until 2016, the maximum deeming period was 15 years. Starting 2017, the deeming period is reduced yearly so the scheme will phase out in the year 2030, which is the government’s goal. By following that, today in 2020, the maximum deeming period has already been reduced to 11 years.

You may calculate the approximate number of STCs your solar system is eligible for here: https://www.rec-registry.gov.au/rec-registry/app/calculators/sgu-stc-calculator

If you would like to manually calculate though, all you have to do is multiply the power output of your solar system (kW) to your postcode rating and to your deeming period and round it down. (kW x rating x deeming period = number of STCs you are eligible for)

Example:

  • I am installing a 5kW solar system in my house.
  • I am from Brisbane, Queensland with a post code of 4000. This means that I am in Zone 3 and my location has a rating of 1.382.
  • My deeming period is 11 years, which is the maximum in the year 2020.
  • 5kW x 1.382 x 11 = 76 STCs

I now know that my 5kW solar panel system is eligible for 76 STCs. What am I supposed to do with that?

How much are these STCs actually worth?

The dollar value of each STC fluctuates depending on market conditions. As of writing this, the dollar value of STCs are at $39.70. Based on our earlier calculations, I am now aware that my 76 STCs are actually worth $3,017.20 (76 x $39.70). That means $3,017.20 less my 5kW solar panel system.

To know how much the current dollar value of STC is check here: https://www.demandmanager.com.au/certificate-prices/