Don’t forget about deeming reduction in 2018
*** Please note that all installs completed in 2017 will still receive the 14 years deeming, even if being claimed in 2018 ***
Let’s review this one more time, what is deeming?
Quite simply the deeming period is an estimate of the years the system will create renewable energy between the year installed and the end of the scheme in 2030.
Why was deeming introduced?
The Clean Energy Regulator determined that deeming provides an efficient method for allocating a meaningful number of certificates to smaller sized systems without the administrative burden of metering each individual system's output. Setting an end-date ahead of time provides our industry and investors with certainty regarding the future of the scheme.
How does reduced deeming work for solar PV?
Under a reduced deeming approach, small-scale systems are only provided with certificates for generation up to 2030. Reduced deeming means that a solar PV system installed in 2017 receives 14 years’ worth of STCs, while a system installed in 2018 will receive 13 years' worth of certificates – rewarding generation up to and including 2030, but not beyond.
We hope this information has cleared up any concerns and questions you have about the upcoming deeming period. While some companies have been using scare tactics to try and push sales by declaring ‘the end of STCs’ the truth is vastly different.
It will be many years before we see any significant impact on the total price for STCs drops and you can rest assured that claiming STCs will still remain a very enticing selling prospect for many years to come.
If you have any questions, please contact us.
The Green Energy Trading Team