Solar systems up to one MW (megawatt) can now create STC (Small-scale Technology Certificate) incentives. Green Energy Trading‘s team explains what the expansion means for commercial installers.
This post was originally published by Ecogeneration
“For C&I customers, 100 kW (kilowatt) is generally not enough, but we’ve seen a lot of systems capped at that point because that’s where the financial returns are best,” says Caroline Bennett, Chief Innovation Officer at Green Energy Group
For years, the 100 kW cap on STCs shaped commercial solar design in Australia. While Australian households have installed around 22 GW (gigawatt) of rooftop solar, businesses have installed approximately 5.6 GW.
The expanded scheme now allows eligible systems to create STCs, provided total site capacity, including existing solar, is between 100 kW and one MW.
For warehouses, farms, cold storage facilities and manufacturers, the Mid-Scale Solar incentive could make commercial solar projects considerably more attractive. Caroline estimates that STC incentives could cover up to 20 per cent of the system’s cost, bringing payback periods below four years at many sites.
Unlike residential solar STCs, deeming for this incentive is fixed at five years and doesn’t decrease annually. A system installed in 2029 will generate the same number of STCs as one installed today, explains Tiana Bergmans, Operations Manager at Green Energy Trading.
For installers, this creates an opportunity to quote larger systems with a meaningful upfront incentive that reduces customers’ investment.
What changes on site
“The first thing that comes to mind is there are a lot more panels to scan,” says Tiana.
Mid-scale systems also involve additional documentation and coordination, including DNSP approval, single-line diagrams, structural engineering reports, planning approvals and metering arrangements.
A scanning error on a commercial roof can mean having to recheck hundreds of panels, making accurate documentation essential.
Tiana’s advice is to speak with your certificate partner before installation begins.
“It’s a lot easier for us to help you with a compliance requirement before the install takes place than to fix something afterwards.”
GET’s in-house Geo/Onsite platform guides teams through each job with easy checklists, while the team reviews supporting evidence before submission.
Cash flow and payment terms
Larger projects also mean larger upfront investments. Caroline says cash flow can be one of the biggest challenges for installers working at this scale.
“Installers want to partner with someone who can help at every step. And they want someone who’s going to pay them.”
Green Energy Trading offers flexible payment terms to suit different business needs. Installers can choose faster payments when cash flow is a priority or opt for higher returns when they’re comfortable waiting.
Stacking incentives
STCs can also be combined with relevant state-based schemes with relevant state-based schemes, including VEECs for eligible Victorian systems between 30kW and 200kW, and PRCs for eligible NSW projects that include a battery.
“The best way to offer the biggest discounts to your customers is to stack the different incentives available,” says Alastair Matcott, Customer Engagement Manager at Green Energy Trading.
GET manages multiple incentives through one platform and one team, helping installers simplify the process and maximise value for customers.
Talk to the Green Energy Trading team
If you’re quoting systems above 100kW, or considering moving into the mid-scale solar market, we’d love to hear from you.
Visit greenenergytrading.com.au/mid-scale-solar-stcs to estimate your incentives and connect with our team.
About Green Energy Trading
Green Energy Trading has been creating and trading environmental certificates for 19 years. We work with installers across Australia on STCs, VEECs, PRCs and other national and state-based schemes. We’ve also helped accredit and manage incentives for more than 550 power stations, more than any other provider in Australia.
This article was featured in ecogeneration website