Choosing your solar water heater/heat pump
Solar hot water systems absorb the energy from the sun to heat water. Heat pump hot water systems draw heat from the air to heat water.
Under the Small-scale Renewable Energy Scheme eligible solar water heaters and heat pumps are entitled to a number of small-scale technology certificates (STCs). This is based on the estimated amount of electricity in megawatt hours (MWh) the system displaces over the course of its lifetime. The number of STCs a particular SWH model is entitled to create will depend on its installation date and geographic location identified through its postcode.
Small-scale technology certificates used to be called Renewable Energy Certificates or RECs.
Your STCs can be assigned to a registered Agent (commonly a retailer or installer) in exchange for a financial benefit such as a discount off your invoice.
If you want to reduce the cost of your solar water heater/heat pump system through the Small-scale Renewable Energy Scheme, you can do the following.
How to reduce the cost of your system
Do your research
If you are looking to purchase a solar water heater/heat pump it’s important to do your research to find a system that suits your needs and budget.
- Ask solar water heater/heat pump retailers and installers to provide advice on the solar water heater/heat pump system that is appropriate for your home.
The Clean Energy Regulator does not provide advice on system choice.
The below Australian Government websites contain information for the householder regarding hot water systems.
Shop around for an Agent
Under the Small-scale Renewable Energy Scheme, retailers and installers of solar panel systems can apply to the Clean Energy Regualtor to become Registered Agents of STCs.
The Clean Energy Regulator has a list of Registered Agents who have chosen to display their details. Note that the Clean Energy Regulator does not endorse these Agents, and this list is not the complete listing of all Agents in the scheme, but it may be a good place to start finding someone who can manage your installation.
Visit – List of Registered Agents
Ensure the solar water heater/heat pump is eligible for the Small-scale Renewable Energy Scheme
Make sure you ask your Agent whether your solar water heater/heat pump is eligible to receive STCs. A new solar water heater/heat pump is eligible:
- If it is a new system and is listed on the Register of Eligible Solar Water Heaters. Visit – Register of Eligible Solar Water Heaters
- If STCs are created within 12 months of installation. If you choose to go through an Agent they will create the STCs on your behalf.
- Systems with a capacity greater than 700 litres, installed on or after 9 September 2009, will need signed Statutory Declarations in order to be eligible. Visit Larger Hot Water Systems.
- Air source heat pumps with a volumetric capacity over 425 litres are excluded from creating certificates if installed on or after 29 June 2010 unless contracts for sale and installation were entered into prior to that date. Visit Larger Hot Water Systems.
You must be the owner of the system at the time it is installed. In some circumstances, where the solar water heater or heat pump is installed in a new building, the owner can be the builder or property developer. Ensure you have checked the system's ownership before you assign the STCs.
Choose an Agent and determine your financial benefit
Agents registered with the Clean Energy Regulator will offer you a financial benefit for your STCs, such as a discount off the invoice, in exchange for the right to create and sell the certificates.
You can ask your registered Agent about the number of STCs your system is eligible for, and the price they are offering you per STC. The financial benefit is usually based on the STC price at the time of the offer. The price of STCs fluctuates depending on supply or demand.
The Clean Energy Council has a spot price for STCs on their front page; however, different STC traders may offer different prices, much like currency can be bought for different prices depending on who's buying. Conduct a web search for 'STC price' or 'REC price' to find other traders and prices.
You can also determine the number of certificates your solar panel system is eligible by using the SWH Calculator.
To get an idea of the approximate discount you could receive visit the Financial Incentives for your solar water heater/heat pump page.
The Clean Energy Regulator does not set the STC price used by Agents, nor does it get involved in disputes between owners and Agents. Payment for STCs or the rights to create STCs is a contractual matter between you and your Agent.
At this point you may asked to sign a contract that defines the price and payment requirements related to the system. Ensure this is not an STC Assignment Form. You can only assign your STCs to your Agent when the system has been fully installed and is capable of generating hot water.
Another option to reduce the cost of your solar water heater/heat pump
Although a majority of owners choose to go through a registered Agent, some choose to create the STCs themselves. This process is complicated and includes:
- Determining the eligibility of the solar water heater/heat pump.
- Calculating the STCs.
- Completing the appropriate compliance paperwork.
- Creating an account in the REC Registry.
- Verifying your identity.
- Creating STCs in the REC Registry.
- Waiting to have the STCs validated.
- Finding a buyer or placing the STCs in the STC Clearing House queue.
The Clean Energy Regulator cannot provide an estimate of how long it will take for STCs to sell in the Clearing House. STCs will only sell when a buyer is available and owners should plan their system purchase with this in mind.
Visit:
Date last updated: 21 Mar 2012