In the past, we have seen a shortage of supply of STC’s generated by the solar industry. This shortage had driven up the pricing offered to clients for some time now. The concern we now face is an oversupply of STC’s, with the supply and demand equation now tipping in favour of those at the clearing house due an ongoing increase of installed PV.
For the past 12 months, we have seen extremely high prices offered for Small Scale Technology Credits, generated by home owner’s new solar investments. This high price has allowed home owners to reap the benefit’s, reducing the purchase price.
Retailer’s have been keeping a keen eye on the future forecasts of where this pricing was heading.
After several months of speculation and small drops in the price, the industry has seen a steep drop of close to 25%. Changing the pricing from a cool $38 to a mere $28 for each credit a home owner’s system will generate.
A 5kW installation will produce 96 credits.
. 5 x 14 x 1.382 = 96
At the earlier price of $38, a home owner could see a cut of >$3,600
Today’s price of $28 would reduce that amount to <$2,700 for the same system.
We are forecasting a shaky few months for the industry as retailers and installers alike, scramble to stay in check with this pricing. Home owner’s have been offered this discount at the point of sale, avoiding any risk of price changes. This scenario has had no negative effects on the working industry but will now see retailers and installers losing out $100’s, even $1,000’s of dollars.
Home owners will need to brace for a reduced discount offered by retailers. At the same time, we feel more discussion should be had to protect those who support the growth and development of this industry. To introduce monetary payments at the commissioning stage as common practice. Similar methods are used when installing for ABN holders and will help to protect both the SME and larger solar retailers.