Stop Waiting! Get Solar Now!

Should I install solar now or wait until next year?

The standard answer to this question, no matter when it's asked, is "NOW". Especially now, as we lead into Christmas.

You see, Christmas time involves time off with the family, lots of cooking, and lots of guests (some that seem to stay for longer than you had hoped or expected). Our electricity consumption is going to be at its peak for the year. It's going to be hot, so the air con will be doing overtime as well.

The days are longer at this time of year as well, so we have all this fantastic solar production opportunity going to waste, when we need it the most. You see, in the 6 warmer months of the year, our solar systems produce about 2/3rds of our yearly output. And in the 6 cooler months, they produce about 1/3rd of the yearly output. So the summertime is our best time to have solar.

Then there is the hot topic of the "rebate". By design, the rebate reduces every year on January 1st. At the moment, when we install a 6.6kW solar system, we create 100 "Small Scale Technology Certificates" (STC'S). These are part of the "Renewable Energy Certificate Scheme" (RECS) and are designed for system sizes below 100kW's, which generally relates to the residential sector of the market. When we create these certificates, we then sell them to an aggregator that trades in these STC's. They then sell them to the big polluters (power companies for example) who have a quota of certificates to buy every year. They will only buy them in 5-10,000 lots, so that is why we sell to the aggregator, they buy the smaller lots from us and then on sell them in the bigger lots. Currently they are valued at around $37 each. This is how we pass on the rebate to you; we discount the rebate upfront, knowing that we will receive the payment on your behalf, usually within 24hrs.

This scheme is designed to end in 2030 and the certificates are based on the amount of energy that the system will create until the end of the scheme. We base our rebate calculation on a "deeming period" which is currently 11 years (till the end of the scheme) and the size of the solar panel system to be installed. On January 1st, our "deeming period" will drop to 10 years (till the end of the scheme) and we will only be able to create 92 STC's for a 6.6kW System. Based on the current value per STC of around $37.00, that is close to a $300.00 reduction in your rebate. If you are looking for a larger system, then the difference is greater. We install quite a few systems at 13.2kW these days, so the rebate reduction will be close to $600.00. The value of the certificate hasn't changed, it's just the number of certificates that we can create has changed, therefore, reducing your rebate.

So that's why I say "NOW" is the best time to install your solar system. You have immediate impact on your energy reliance through summer, and your rebate drops on January 1st (a little bit) and that rebate money may as well be in your pocket. You can have your family over at Christmas time and show off your shiny new solar system. The kicker is when you show them your shiny new power bill.

There is still time to get it done, but don't wait too much longer.

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