There are 2 subsidies for solar under 100kW: STCs (AKA the ‘solar rebate’) and the lesser known LGCs. Which one will give you the better return?

Update 23rd Feb 2018: Solar installations of 100 kilowatts or less now only receive STCs.  However, applications made before March 31st 2018 for systems of 10 to 100 kilowatts may be accepted under the old rules and permitted to receive LGCs.

Many people are aware the Renewable Energy Target, or RET, lowers the cost of rooftop solar.  This is often called the solar rebate, even though that term is not entirely accurate.

But what few people know is, provided their system is large enough, they have a choice in the type of assistance they receive.  A household with a 10 kilowatt rooftop solar system can either accept Small-scale Technology Certificates (STCs) or Large-scale Generation Certificates (LGCs).

Almost all solar systems 100kW and smaller, currently being installed use STCs because they are all deemed immediately after the installation whereas LGCs are deemed annually over 15 years.

At the time of writing (July 2016) STCs are $38 each whereas LGCs are at a sky high $82. This has made some savvy solar installers wonder if using LGCs instead of STCs might create a better return for patient solar owners. [Read more…]