1. The number of STCs being created is higher than the target set
The Government announced on Tuesday the 2019 small-scale technology percentage (STP) is 21.73%. This means Australia is required to surrender approximately 37.5 million small-scale technology certificates (STCs) to meet Small-scale Renewable Energy Scheme (SRES) obligations for 2019.
Currently, the number of STCs being created is equivalent to 15% higher than the target for STCs set by the SRES for 2019. Due to these numbers, we are concerned STCs prices could drop further as they have in previous years.
2. Australian dollar
The Australian dollar (AUD) has fallen in recent months and some analysts have predicted further falls. Overall, the risk from movements downward in the AUD, is inflationary for solar.
On a brighter note, Echo Group can hold onto our solar pricing until the end of the month, guaranteeing a more affordable solar system installation.
In summary, if the STCs price drops (which has occurred year-on-year since 2011) then the price of a solar system will increase.
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The solar market is off to a strong start in 2019 with the installation of systems (less than 100kW) already up 44% on previous years.
There has never been a more viable time to install solar. Call us today to lock in your pricing.
For more information on the Government announcement click here.