No More STCs For Solar Panel Replacements

STC changes - solar panels in Australia

Changes will help discourage solar panel shonkiness

It will soon be more difficult for shonky solar companies to take advantage of Australia’s small-scale technology certificates (STC) system.

It’s currently the case that if a solar panel or a number of modules in a system need replacing, STC’s (which form the basis of solar subsidies in Australia) could be claimed on the replacement modules.

One of the problems with this is it means some installation companies decide to take a chance on installing lower quality equipment knowing that the financial hit won’t be as hard if some panels start failing during the warranty period. Or – if they use spectacularly cheap panels – they can even turn a profit on the replacement panels; despite them being free replacements as far as the consumer is concerned.

There were even reports of door knockers persuading people to replace their perfectly good, high quality panels with low cost junk – so the company could claim the STCs on the cheap replacement panels.

Another scenario is where the panels fail after the product warranty ends – leaving the customer picking up the full cost of replacement and the shonky solar company potentially having another bite at the customer’s business.

This situation will soon change after Australia’s Clean Energy Regulator updated guidelines regarding small-scale systems eligibility for certificates. From January 31 next year, where one, some or all panels are replaced in a system, they will no longer be eligible for STCs.

Applications involving one, some or all panels being replaced will still be considered for STC’s for installations up to 31 January 2018, assuming all other requirements are satisfied.

The change should mean solar panel quality and warranty will become an even more important consideration in terms of the module manufacturers Australian solar companies choose to deal with.

SolarQuotes‘ Finn Peacock said the change is for the better.

“Shonky operators installing low quality panels safe in the knowledge that they can make even more money replacing them in just a few years will be run out of town,” he said.

The Clean Energy Regulator is also tightening rules and boosting monitoring associated with STCs in other ways.

Earlier this week, we mentioned the Regulator’s update on the development of solar panel validation tools that will help thwart sub-standard and non-genuine modules being sold and installed in Australia. Once the tools have been broadly adopted, STCs created without validated data will be flagged for increased scrutiny under the Regulator’s compliance program.

Even without the validation tool, the Clean Energy Regulator has been using other means to increasingly crack down on non-compliant solar panels .

About Michael Bloch

Michael caught the solar power bug after purchasing components to cobble together a small off-grid PV system in 2008. He's been reporting on Australian and international solar energy news ever since.

Comments

  1. It is alright for some person removed from the real life situation, to say, as a generalisation, that “the change is for the better.”

    We currently have two domestic rooftop photovoltaic systems installed, and, in use. They give about 80% efficiency, due to their orientation. I have been investigating enhancing what we have.

    The change is pretty much following the federal parliament’s policy of “Cause as much harm as possible, at the greatest possible expense to the plebs”.

    Our systems that we have, could be enhanced by
    1. adding an extra array of panels totalling 1kW capacity, to fully overload (within the allowances) one of the existing inverters, to maximise our potential generation via the existing inverters, which are in total, the sum total of what is allowed on a single phase system;
    2. replacing the existing two inverters (1.5kW and 3kW nominal capacity; 4.95kW rated capacity) with a single inverter with a nominal capacity of 5kW, allowing even more panels; up to 6.5kW of panels, in total, to be installed; and,
    3. adding storage batteries, with a hybrid inverter, and, configured to act as a full UPS system.

    However, as our panels are 250W polycrystalline panels, which are apparently, no longer available, and, as our systems are about four years old, so that, I am advised, no installer would make any of these changes, without replacing the whole of the two systems, we are left in the dark with no prospect of improving on what we have, due to the assertion that “change is for the better.”, coming from someone removed from the real life circumstances.

    It is unfortunate that politicians in their ivory towers, do not fully consider the consequences.

    • Finn Peacock says

      Bret,

      You can simply add a third system and claim all the STCs.

      If you don’t want another inverter on the wall then consider microinverters.

  2. how do i start ok … we have had solar on roof since 2009 with hot water and back to grid recently got hot water panels only replaced thru another company , but haven’t touched back to grid panels or inverter , i had my electrify bill feed in tariff change from 54 to 10 cent in 1 bill not happy , agl says it could be the installer of the hot water panel , when i rang them they said it not but they want me to sign them the stc form for warranty on the new solar panel for hotwater or want be under warranty they also said stc is for the rebate for them not the other panels ..so i so confused and frustrated. who’s right we only changed panel due to it was badly coroded and not working well,,

    • Ronald Brakels says

      Hi Rob

      Having work done on a solar hot water system should have no effect on your solar feed-in tariff. STCs are also not related to feed-in tariffs. If there has been no change in your solar PV system your feed-in tariff shouldn’t change. You could contact AGL again and inform them there has been no change in your solar PV situation and see if that gets you anywhere.

  3. If your Solar Installation Co, Great Solar Solutions, goes bust what happens to the STCs that were assigned to them? Can you claim them back? I’ve lost money because of them. First the DC Isolator Switch failed & I had to replace it at my expense. Then my JFY Inverter failed & it took a long time to track down the manufacturer & get them to replace it just before the warranty expired. In addition there were many months when I wasn’t able to generate any power & so missed out on the Govt & Retailer Solar buy back. I would really like to know if I can claim back these STCs to recoup some losses.

    • Ronald Brakels says

      Hi Kev

      I’m afraid that if you had a normal solar installation you would have agreed to sell your STCs to the installer and they would have surrendered them in return for money soon after.

  4. Thanks it seems there are too many shonky operations out there. I am thinking of adding a second system. I am trying to check things more this time. I have been told that the two systems can operate side by side with their separate inverter systems and combine to double my solar generation and that I will get the solar buy back currently 11c on the combined generation. Is this true? Anything else to be wary of?

    • Ronald Brakels says

      Hi Kev

      It is possible to have two systems operating on your roof, provided there is room for them. Depending on the size and condition of your old system you could also have it removed and replaced with one large one, but removing the old one will be an additional expense. I don’t know where you are. If you are in Victoria the minimum solar feed-in tariff is 9.9 cents but it is possible to get a higher one. There is also now a state subsidy for solar in Victoria. It doesn’t apply to people who already have solar, but it’s not clear yet if people who remove an old system from their roof can then receive it to get a larger new system.

  5. Ok thanks for the update. I will try & find out if you can get the old one removed to get the Vic Gov subsidy & if it is cost effective to do it. My old system is working ok now with the replacement inverter & DC Isolator switch but they may also fail prematurely as I’ve now discovered in reviews that my existing JFY inverter & my Linuo panels don’t seem to review well & installed by Great Solar Solutions, a flight by night company that leaves you for dead. A wonder who they are trading as now. I want to avoid those types of companies. I noticed that Hello Solar seems to be getting reasonable reviews in Victoria but less so in other states. I have a good quote from them for a second 2 Kw system to make a combined 4 Kw which is all I can fit on my north side. It doesn’t seem to be as good a deal though as when I got my original subsidized system & 33 cent buy back. It paid for itself fairly quickly. With the current buy back of 9.9 cents & it looks like no subsidy it’s going to take a lot longer to pay for itself.

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