BLOG > Do you know that Solar Power Systems will get costlier from January 1, 2022?

Do you know that Solar Power Systems will get costlier from January 1, 2022?

Post By: Amrut Solar

Nov 25, 2021

Solar system costs are increasing year on year !! If any doubts persist regarding the deeming period reduction, get the facts right.

deeming period

What is a deeming period?

According to theAustralian government, the renewable energy STC scheme is scheduled to phase out by 2030, so the number of STCs you get per kW of solar installed is decreasing each year. This is called the deeming period and is essentially a countdown to 2030 when this scheme of renewable energy target will be met. Reducing the deemed period to 9 years makes solar systems costlier. STCs decrease along with the reduction in the deeming period. You naturally pay more.

STCs or small-scale technology certificates under the Small-scale Renewable Energy Scheme consider 2030 as the final date. The current deeming period of 10 years until 2030 is changing. Beginning January 1, 2022, the deeming period reduces to 9 years, valid until 2030. In 2023, the deeming period reduces by one more year and so on.

Claims made for 2021 solar installations will not be affected, even if made in 2022, deemed for ten years this year. The change comes in 2022.

What is a deeming period?

Use the Clean Energy Regulator Calculator

https://rec-registry.gov.au/rec-registry/app/calculators/sgu-stc-calculator

Three factors will be considered when STCs are calculated,

  • kW size of system
  • Postcode zone rating
  • Number of deeming years left.
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