SGU STC calculations for small-scale solar panel systems

In this fact sheet:

CALCULATING STCS FOR SMALL-SCALE SOLAR PANELS WITHOUT SOLAR CREDITS CALCULATING STCS FOR SMALL-SCALE SOLAR PANELS WITH SOLAR CREDITS CALCULATING STCS FOR SMALL-SCALE SOLAR PANELS WITH OFF-GRID SOLAR CREDITS TABLE 1: RATINGS AND POSTCODE ZONES FOR SMALL-SCALE SOLAR PANELS TABLE 2: ZONE RATINGS FOR SMALL-SCALE SOLAR PANELS TABLE 3: SOLAR CREDITS MULTIPLIER TRANSITIONAL ARRANGEMENTS FOR RECEIVING THE 2X SOLAR CREDITS MULTIPLIER TRANSITIONAL ARRANGEMENTS FOR RECEIVING THE 4X SOLAR CREDITS MULTIPLIER STC CALCULATION EXAMPLES EXAMPLE 1 SMALL-SCALE SOLAR PANEL SYSTEM WITHOUT SOLAR CREDITS EXAMPLE 2 SMALL-SCALE SOLAR PANEL SYSTEM WITH SOLAR CREDITS EXAMPLE 3 SMALL-SCALE SOLAR PANEL SYSTEM WITH OFF-GRID SOLAR CREDITS

This fact sheet provides the details of STC Calculations for small generation units (SGUs). There is also an STC Calculator on the REC Registry that will perform these calculations. https://www.recregistry.gov.au/sguCalculatorInit.shtml To determine if your SGU meets eligibility requirements, see the Solar Panels section of the Clean Energy Regulator website at http://ret.cleanenergyregulator.gov.au/Solar-Panels/choosing-solar-panels

Calculating STCs for small-scale solar panels without Solar Credits

You must firstly determine that your solar panel system meets the relevant eligibility requirements. To determine if your system is eligible to create STCs, see the Solar Panels section of the Clean Energy Regulator website at http://ret.cleanenergyregulator.gov.au/Solar-Panels/choosing-solar-panels. 1. Establish your Zone Rating by using Table 1 & 2, Ratings and Postcode Zones for small-scale solar panels & Zone ratings for small-scale solar panels on page 6 of this document. 2. Determine the rated power output of your solar panels in the specifications provided by the manufacturer. Ensure that you use the exact figure that applies to your particular model (to three decimal places). In the case where the rated output of PV array is equal to or less than the peak rated output of the inverter, then the rated output of the panels is to be used. o In the case where the rated output of the PV array is greater than the peak rated output of the inverter, then to be eligible for certificates, the system must comply with the recommendations stated in the Clean Energy Council's Grid-connected Solar PV Systems Design Guidelines.

3. Multiply the Zone Rating by your SGU's rated power output in kilowatts-peak (kWp). This calculates the annual STC entitlement for your solar panels.
Page 1 of 11 GPO Box 621 Canberra ACT 2601 T 1300 553 542 E retscheme@cleanenergyregulator.gov.au W ret.cleanenergyregulator.gov.au

Zone rating

Rated power output in kW of your solar panel system

Your annual STC entitlement

4. If your systems annual output is greater than 250 MWh (ie. generates more than 250 MWh of electricity) your unit is classified as a power station and you cannot create or assign STCs to an agent. You must apply as an accredited power station and create LGCs. 5. To apply to the Clean Energy Regulator for an accredited power station see the Power Stations Guide on the website. 6. If your systems annual output is less than 250 MWh, continue this process. 7. Choose the deeming period for which you would like to create STCs. STCs may be created for SGUs in batches of 1, 5 or 15 year deeming periods. Please be aware certificates must be created within 12 months of the installation date. STCs may be created for small-scale solar panels either: o o o annually; or on installation for the first 5 years after installation (the deeming period), and then at the start of each subsequent 5 year deeming period; or on installation for 15 years (the deeming period), after which no further STCs may be created.

8. Calculate the STC entitlement for each deeming period by multiplying the Annual STC Entitlement by the number of years in your chosen deeming period (i.e. either 1, 5 or 15). o o If your calculated STC entitlement over a one, five or 15 year period is not a whole number and is greater than 1 MWh, round the calculated number down to the nearest whole number of STCs. If your calculated STC entitlement over a one, five or 15 year period is not a whole number and is between 0.5 MWh and 1 MWh, round the calculated decimal up to 1 STC.

Calculating STCs for small-scale solar panels with Solar Credits

Units that are eligible for Solar Credits are able to create additional STCs based upon the calculation methodology below. If you are unsure of your systems eligibility for Solar Credits, please see the Solar Credits section of the website at http://ret.cleanenergyregulator.gov.au/Solar-Panels/Solar-Credits/Solar-Credits. 1. Establish your Zone Rating by using Table 1 & 2, Ratings and Postcode Zones for small-scale solar panels & Zone ratings for small-scale solar panels on page 6 of this document. 2. Establish the multiplier value for your STCs under Solar Credits. See Table 3, Solar Credits multiplier on page 7 of this document. Ensure it is correct. 3. Determine the rated power output of your solar panels in the specifications provided by the manufacturer. Ensure that you use the exact figure that applies to your particular model. In the case where the rated output of PV array is equal to or less than the peak rated output of the inverter, then the rated output of the panels are to be used. In the case where the rated output of the PV array is greater than the peak rated output of the inverter, then to be eligible for certificates, the system must comply with the recommendations stated in the Clean Energy Council's Grid-connected Solar PV Systems Design Guidelines. 4. If your systems annual output is greater than 250 MWh (ie. generates more than 250 MWh of electricity) your unit is classified as a power station and you cannot create or assign STCs to an agent. You must become an accredited power station and create LGCs.

o To apply to the Clean Energy Regulator for an accredited power station, see the Power Stations Guide on the website. 5. If your systems annual output is less than 250 MWh, continue this process. 6. Calculate the number of STCs for which your system is eligible on an annual basis. 7. Note: o o Solar credits only apply to the first 1.5 kW of capacity installed at an eligible premises. Generation capacity above 1.5 kW, either on the original unit or any additional capacity installed at a later date, will still be eligible for the standard 1:1 rate of STC creation.

8. For systems rated at 1.5kW or below: Rated power output (in kW) X Postcode Zone Rating X Multiplied value in Table 3 Solar credits X Deeming Period

9. For systems rated at 1.5kW or over

( (
o o o

1.5

Postcode Zone Rating

Multiplied value in Table 3 Solar credits

Deeming Period

) )

+
Total rated power output (in kW) minus 1.5 X Postcode Zone Rating X Deeming Period

10. Choose the deeming period for which you would like to create STCs. STCs may be created for SGUs in batches of 1, 5 or 15 year deeming periods. Please be aware certificates must be created within 12 months of the installation date. STCs may be created for small-scale solar panels either: annually; or on installation for the first 5 years after installation (the deeming period), and then at the start of each subsequent 5 year deeming period; or on installation for 15 years (the deeming period), after which no further STCs may be created.

11. Calculate the STC entitlement for each deeming period by multiplying the Annual STC Entitlement by the number of years in your chosen deeming period (ie either 1, 5 or 15). o o If your calculated STC entitlement over a one, five or 15 year period is not a whole number and is greater than 1 MWh, round the calculated number down to the nearest whole number of STCs. If your calculated STC entitlement over a one, five or 15 year period is not a whole number and is between 0.5 MWh and 1 MWh, round the calculated decimal up to 1 STC.

Calculating STCs for small-scale solar panels with off-grid Solar Credits
Units that are eligible for off-grid Solar Credits are able to create additional STCs based upon the calculation methodology below. If you are unsure of your systems eligibility for Solar Credits, please see the Solar Credits section of the website at http://ret.cleanenergyregulator.gov.au/Solar-Panels/Solar-Credits/Solar-Credits. Please note the off-grid tally can change significantly and quickly irrespective of the frequency of updating the website, because of the creation of certificates for large installations. The Clean Energy Regulator only becomes aware of these installations once these certificates have been created in the REC Registry. The Clean Energy Regulator cannot provide advice about when the off-grid tally will be met and you should take this into consideration when you are purchasing a system. 1. Establish your Zone Rating by using Table 1 & 2, Ratings and Postcode Zones for small-scale solar panels & Zone ratings for small-scale solar panels [page 6] of this document. 2. Establish the multiplier value for your STCs under Solar Credits. See Table 3, Solar Credits multiplier on page 7 of this document. Ensure it is correct. 3. Determine the rated power output of your solar panels in the specifications provided by the manufacturer. Ensure that you use the exact figure that applies to your particular model. In the case where the rated output of PV array is equal to or less than the peak rated output of the inverter, then the rated output of the panels are to be used. In the case where the rated output of the PV array is greater than the peak rated output of the inverter, then to be eligible for certificates, the system must comply with the recommendations stated in the Clean Energy Council's Grid-connected Solar PV Systems Design Guidelines. 4. If your systems annual output is greater than 250 MWh (ie. generates more than 250 MWh of electricity) your unit is classified as a power station and you cannot create or assign STCs to an agent. You must become an accredited power station and create LGCs. o To apply to the Clean Energy Regulator for an accredited power station, see the Power Stations Guide on the website. 5. If your systems annual output is less than 250 MWh, continue this process. 6. Calculate the number of STCs for which your system is eligible on an annual basis. 7. Note: o o Off-grid solar credits only apply to the first 20 kW of capacity installed at an eligible premises. Generation capacity above 20 kW, either on the original unit or any additional capacity installed at a later date, will still be eligible for the standard 1:1 rate of STC creation.

8. For off-grid systems rated at 20kW or below: Rated power output (in kW) X Postcode Zone Rating X Multiplied value in Table 3 Solar credits X Deeming Period

9. For off-grid systems rated at 20kW or over

( (
o o o

20

Postcode Zone Rating

Multiplied value in Table 3 Solar credits

Deeming Period

) )

+
Total rated power output (in kW) minus 20 X Postcode Zone Rating X Deeming Period

10. Choose the deeming period for which you would like to create STCs. STCs may be created for SGUs in batches of 1, 5 or 15 year deeming periods. Please be aware certificates must be created within 12 months of the installation date. STCs may be created for small-scale solar panels either: annually; or on installation for the first 5 years after installation (the deeming period), and then at the start of each subsequent 5 year deeming period; or on installation for 15 years (the deeming period), after which no further STCs may be created.

11. Calculate the STC entitlement for each deeming period by multiplying the Annual STC Entitlement by the number of years in your chosen deeming period (ie either 1, 5 or 15). o o If your calculated STC entitlement over a one, five or 15 year period is not a whole number and is greater than 1 MWh, round the calculated number down to the nearest whole number of STCs. If your calculated STC entitlement over a one, five or 15 year period is not a whole number and is between 0.5 MWh and 1 MWh, round the calculated decimal up to 1 STC.

Table 1: Ratings and postcode zones for small-scale solar panels

Table 2: Zone ratings for small-scale solar panels

Zone 1 2 3 4 Rating 1.622 1.536 1.382 1.185

Postcode range from to zone 0 799 3 800 869 2 870 879 1 880 1000 2 1001 2356 3 2357 2357 2 2358 2384 3 2385 2393 2 2394 2395 3 2396 2398 2 2399 2399 3 2400 2400 2 2401 2404 3 2405 2407 2 2408 2410 3 2411 2414 2 2415 2536 3 2537 2537 4 2538 2544 3 2545 2557 4 2558 2626 3 2627 2629 4 2630 2630 3 2631 2639 4 2640 2820 3 2821 2842 2 2843 2872 3 2873 2874 2 2875 2876 3 2877 2889 2 2890 2897 3 2898 2899 3

Postcode range from To Zone 2900 2999 3 3000 3390 4 3391 3398 3 3399 3413 4 3414 3426 3 3427 3474 4 3475 3514 3 3515 3516 4 3517 3520 3 3521 3524 4 3525 3538 3 3539 3539 4 3540 3549 3 3550 3560 4 3561 3569 3 3570 3570 4 3571 3606 3 3607 3617 4 3618 3622 3 3623 3628 4 3629 3657 3 3658 3684 4 3685 3687 3 3688 3724 4 3725 3731 3 3732 3999 4 4000 4416 3 4417 4417 2 4418 4422 3 4423 4423 2 4424 4426 3 4427 4473 2

Postcode range from to zone 4474 4476 1 4477 4478 2 4479 4485 1 4486 4490 2 4491 4492 1 4493 4499 2 4500 4721 3 4722 4722 2 4723 4723 3 4724 4735 2 4736 4736 1 4737 4824 3 4825 4827 2 4828 4828 3 4829 4829 2 4830 5261 3 5262 5263 4 5264 5270 3 5271 5300 4 5301 5429 3 5430 5450 2 5451 5653 3 5654 5669 2 5670 5679 3 5680 5699 2 5700 5709 3 5710 5722 2 5723 5724 1 5725 5733 2 5734 5799 1 5800 6243 3 6244 6250 4

Postcode range from to zone 6251 6254 3 6255 6270 4 6271 6315 3 6316 6357 4 6358 6393 3 6394 6400 4 6401 6430 3 6431 6431 2 6432 6433 3 6434 6439 2 6440 6441 1 6442 6444 3 6445 6459 4 6460 6467 3 6468 6469 2 6470 6471 3 6472 6474 2 6475 6506 3 6507 6555 2 6556 6573 3 6574 6602 2 6603 6607 3 6608 6641 2 6642 6724 1 6725 6750 2 6751 6797 1 6798 6799 2 6800 6999 3 7000 8999 4 9000 9999 3 -

Table 3: Solar Credits multiplier

Installation Period 1 July 2010 - 30 June 2011 1 July 2011 - 30 June 2012 1 July 2012 31 December 2012 1 January 2013 - onwards Multiplier 5 x [number of eligible STCs] 3 x [number of eligible STCs] * 2 x [number of eligible STCs]** 1 x [number of eligible STCs] (ie no multiplier)

* unless contracts made on the basis of a multiplier of 4 were entered into prior to 5 May 2011, in which case the multiplier of four (4) may apply. See "Transitional Arrangements" below for more detail. ** unless contracts made on the basis of a multiplier of 2 were entered into prior to 16 November 2012, in which case the multiplier of two (2) may apply. See "Transitional Arrangements" below for more detail.

Transitional arrangements for receiving the 2x Solar Credits multiplier

A summary of the requirements is as follows: A contract must have been entered into before 16 November 2012, for the supply and installation of an eligible small-scale solar panel, wind, or hydro system. The system must be installed between 1 January 2013 and 30 June 2013. A Statutory Declaration must be provided to the Clean Energy Regulator before STCs are created. The Statutory Declaration/s must confirm the existence of legally-recognised contract document/s, and your ability to supply copies of the document/s to Clean Energy Regulator if required. STCs must be created within 12 months of the systems installation. The system must comply with all other Solar Credits eligibility requirements. If your system meets with these requirements, please see the Transitional Arrangements webpage for the complete compliance requirements. The Clean Energy Regulator undertakes investigative audits based on a risk management approach to verify applicants have met specified requirements for creation of STCs.

Transitional arrangements for receiving the 4x Solar Credits multiplier

A summary of the requirements is as follows: A contract must have been entered into before 5 May 2011, for the supply and installation of an eligible smallscale solar panel, wind, or hydro system. The system must be installed between 1 July 2011 and 30 June 2012. A Statutory Declaration must be provided to the Clean Energy Regulator before STCs are created. The Statutory Declaration/s must confirm the existence of legally-recognised contract document/s, and your ability to supply copies of the document/s to Clean Energy Regulator if required. STCs must be created within 12 months of the systems installation. The system must comply with all other Solar Credits eligibility requirements. If your system meets with these requirements, please see the Transitional Arrangements webpage for the complete compliance requirements. The Clean Energy Regulator undertakes investigative audits based on a risk management approach to verify applicants have met specified requirements for creation of STCs.

STC Calculation Examples

Example 1 Small-scale solar panel system without Solar Credits
You wish to create STCs for a 15-year deeming period for a small-scale solar panels system installed by a Clean Energy Council (CEC) accredited installer on 3 November 2012 in the postcode area of 2315. The system has a rated power output of 2.5 kW. Determine eligibility Have the solar panels been installed within the last 12 months? Does the unit have a rated output of not more than 100 kilowatts (kW) or a total annual output less than 250 MWh? Was the unit designed and installed by a person accredited for stand-alone and gridconnected power units under the Clean Energy Council accreditation scheme? Is this unit is rated at less than 100 kW, and has a total annual output of less than 250 MWh per year? Yes Yes

Yes

Yes.
(It does not need to be accredited as a Power Station).

The system is eligible to create STCs. Calculate STCs Look up the postcode in Table 1 to establish the Postcode Zone: Look up the Postcode Zone in Table 2 to establish the Zone Rating: Multiply the Zone Rating by the kW capacity to get the annual STC entitlement: 3 1.382 1.382 x 2.5kW = 3.455 MWh 3.455 x 15 years = 51.825 MWh 51.825 MWh = 51 STCs

Multiple by 15 years to get the total STC entitlement:

Round down the total amount of electricity taken to be generated to the last whole MWh to determine the number of STCs you are eligible to create:

Example 2 Small-scale solar panel system with Solar Credits

You wish to create STCs for a 15-year deeming period for small-scale solar panels installed by a Clean Energy Council (CEC) accredited installer on 10 November 2012 in the postcode area of 2315, which has a rated power output of 4.5 kW. Determine eligibility Were the solar panels installed on or after 9 June 2009? Have the solar panels been installed within the last 12 months? Does the unit have a rated output of not more than 100 kilowatts (kW) or a total annual output less than 250 MWh? Yes Yes Yes
(It does not need to be accredited as a Power Station).

Does the unit have a total rated power output of more than 1.5 kW? Was the unit designed and installed by a person accredited for stand-alone and gridconnected power units under the Clean Energy Council accreditation scheme? Is the unit a new and complete unit? (see the Solar Credits section of the website for more information). Is the unit installed at an eligible premises? Is there pre-approval or financial assistance for any small generation unit at your address for a Solar Homes and Communities (SHCP), Photovoltaic Rebate Programme (PVRP), Renewable Remote Power Generation (RRPGP) or National Solar Schools Program (NSSP) rebate?

Yes Yes Yes Yes No

The system is eligible to create STCs with a Solar Credits multiplier. Calculate STCs

Look up the postcode in Table 1 to establish your Postcode Zone: Look up the Postcode Zone in Table 2 to establish your Zone Rating:
Multiply your Zone Rating by 1.5, your chosen deeming period, and the multiplier value for Solar Credits Table 3. (We have used 2x multiplier for this example).

3 1.382

This provides you with the total STC entitlement for the first 1.5 kW of installed capacity.
Look up your total rated power output. Subtract 1.5 from the total rated power output. This is the output for which you will calculate STCs without solar credits. Multiply this number by the postcode zone rating and the deeming period.

1.382 x 1.5 x 15 x 2 = 62.19 MWh

4.5kW - 1.5 = 3 kW 3 kW x 1.382 x 15 = 62.19 MW 62.19kW + 62.19 kW = 124.38 MWh 124.38 MWh

This provides you with the total STC entitlement for the remainder of the kW capacity installed.
Add the STC entitlement for the first 1.5 kW of capacity installed to the STC entitlement for the remainder of the kW capacity: Round down the total amount of electricity taken to be generated to the last whole MWh to determine the number of STCs you are eligible to create:

= 124 STCs

Example 3 Small-scale solar panel system with off-grid Solar Credits

You wish to create STCs for a 15-year deeming period for small-scale solar panels installed by a Clean Energy Council (CEC) accredited installer on 10 April 2012 in the postcode area of 2315, which has a rated power output of 25 kW. Determine eligibility Were the solar panels installed on or after 9 June 2009? Have the solar panels been installed within the last 12 months? Does the unit have a rated output of not more than 100 kilowatts (kW) or a total annual output less than 250 MWh? Yes Yes Yes
(It does not need to be accredited as a Power Station).

Does the unit have a total rated power output of more than 1.5 kW? Was the unit designed and installed by a person accredited for stand-alone and gridconnected power units under the Clean Energy Council accreditation scheme? Is the unit a new and complete unit? (see the Solar Credits section of the website for more information). Is the unit eligible for OFF-GRID multiplied certificates? ? (see the Solar Credits section of the website for more information). Is the unit installed at an eligible premises? Is there pre-approval or financial assistance for any small generation unit at your address for a Solar Homes and Communities (SHCP), Photovoltaic Rebate Programme (PVRP), Renewable Remote Power Generation (RRPGP) or National Solar Schools Program (NSSP) rebate?

Yes Yes Yes Yes Yes No

The system is eligible to create STCs with an off-grid Solar Credits multiplier. Calculate STCs

Look up the postcode in Table 1 to establish your Postcode Zone: Look up the Postcode Zone in Table 2 to establish your Zone Rating:
Multiply your Zone Rating by 20, your chosen deeming period, and the multiplier value for Solar Credits Table 3. (We have used the 3x multiplier for this example). This provides you with the total STC entitlement for the first 20 kW of installed capacity. Look up your total rated power output. Subtract 20 from the total rated power output. This is the output for which you will calculate STCs without solar credits. Multiply this number by the postcode zone rating and the deeming period.

3 1.382
1.382 x 20 x 15 x 3 = 1243.8 MWh 25kW - 20 = 5 kW 5 kW x 1.382 x 15 = 103.65 MW 1243.8 kW + 103.65 kW = 1347.45 MWh 1347.45 MWh

This provides you with the total STC entitlement for the remainder of the kW capacity installed.
Add the STC entitlement for the first 20 kW of capacity installed to the STC entitlement for the remainder of the kW capacity: Round down the total amount of electricity taken to be generated to the last whole MWh to determine the number of STCs you are eligible to create:

= 1347 STCs