Reduction in Government Solar Incentives from 1st January 2021

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November 30, 2020

Reduction in Government Solar Incentives from 1st January 2021

To promote the use of renewable and sustainable energy resources and reduce carbon dependence and greenhouse gas emissions, the government introduced the Small-Scale Technology Certificate (STC) solar incentive scheme, which started in 2016.

The STC program forms part of Australia’s Renewable Energy Target and is designed to benefit Australian households adopting residential solar systems.

The STC works like a discount voucher that can help you recoup part of the cost of installing your solar panel. The number of available STCs per project is reduced every 1st of January until 2030, so we’re encouraging customers to get their solar system installed ASAP.

The STC deeming period

To achieve the country’s Renewable Energy Target, the government set a deeming period, which affects the number of STCs for a residential solar project. This deeming period is reduced by one year every 1st of January, with the STC program to be phased out completely after 2030.

This means that the early adopters of solar power systems stand to gain the most in this scheme. However, it isn’t too late, especially if you get a reputable and reliable solar system installer to set up your system before the year ends. 

The final calculated STC incentive value based on your zone (location), size of your system (e.g., 6.6kW), and deeming period (based on the installation date) could mean a difference of a few hundred dollars.

For example, two households adopted their own solar power systems in NSW, which is under Zone 3 with a 1.382 rating (this is based on how much solar power can be generated in a zone). 

One got their 6.6kW solar panel system in 2019 and the other in 2020. The household that got their system in 2019 qualifies for a deeming period value of 12 while the one that got theirs in 2020 would have 11.

To find out the difference between the STC incentives of these two households, we have the following calculation:

Household 1 (2019): 1.382 x 12 x 6.6 = 109 STCs

Household 2 (2020): 1.382 x 11 x 6.6 = 100 STCs

Let’s say the current price per certificate is $35. Household 1 would get an STC incentive value of $3,815, while Household 2 would get $3,500.

The installation date determines your deeming period. So, the sooner you get a solar power system for your home, the greater the amount you can recoup from your investment. This is especially true since STCs can be traded like stocks on an open market — their value can increase or decrease depending on their performance.

Start enjoying your STC incentives with Arise Solar today!

The 1st of January 2021 is coming soon. You only have a few days left to qualify for incentives this 2020.

So, hurry and get in touch with us at Arise Solar. We instal the best high-performance solar panel systems in Queensland, New South Wales, and South Australia.


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          This Solar System Promotion is available for standard metropolitan based installations only. Price is after Small Scale Technology Certificates (STCs) have been assigned to Arise Solar Pty Ltd T/A Arise Solar or its agents. Any additional extras including but not limited to double story, roof type, meter box upgrades or three phase power, may attract additional charges. *Price beat offer applies to local competitor advertised quotes only and must be for identical goods. T&C’s apply. Excludes Victoria