STC Reductions for 2024 Installations
It's that time of year again…
THE STC deeming period is reducing.
Solar PV and Water Heaters installed from 1 Jan 2024 will receive 7 years deeming, down from 8 years for jobs installed in 2023, and will result in a 12.5% reduction in STCs.
WHAT DOES THAT LOOK LIKE FOR STC DISCOUNTS?
A 10kW Solar PV system installed in Brisbane, Sydney, Adelaide, or Perth next year will receive 96 STCs, compared to 110 STCs. This equates to around a $500 cashback reduction.
In Melbourne and Hobart, a 10kW PV system will fall from 94 STCs to 82 STCs, around $450 cashback reduction.
A 300L heat pump installed in Melbourne or Hobart will fall from roughly 26 STCs to 23 STCs – depending on the brand and model installed – or around $110 cashback reduction.
In Brisbane, Sydney, Adelaide or Perth that same heat pump will receive slightly more cash with roughly 25 STCs for 2024 installed systems. That’s down from 29 STCs for 2023 jobs – a $150 cashback reduction.
HOW CAN I AVOID THE CASHBACK DROP?
Complete your PV and water heater installations before the end of the year to avoid the STC cashback reduction you quoted for your customers.
Jobs completed in 2023 will still receive 8 years deeming, even if you don’t get round to doing the cashback claim until the new year.
WHAT IS THE DEEMING PERIOD?
The number of small-scale technology certificates (STCs) a system is eligible for depends on the size of the system, location and install date. The install date is an important factor because the STCs are deemed up front i.e. the certificates that would be created from the install year to the end of the SRES Scheme in 2030 are all created up front at the time of the install.
The deeming period is an estimate of the years the system will create renewable energy. The current maximum deeming period is reducing to 7 years in 2024 because the Renewable Energy Target (RET), under which the Small-scale Renewable Energy Scheme operates, is legislated to exist until the end of 2030.
Announcements made by the Federal Government in recent months indicate that they will not be extending the RET. We remain optimistic, and will support industry calls, that the Federal Government continue to support the renewable energy industry to roll out small-scale energy solutions for households and businesses with new policy initiatives.
Ready to take the next step?
Login to Geo to start your next claim.
Geo is online and available for you to continue to log and update your jobs all throughout the summer period. Payments will resume from Monday 8 Jan 2024, when our office re-opens.
Wishing you all a wonderful and safe Christmas and New Year.
See you in 2024!