How Does it Work?
The Federal Government of Australia has implemented a program whereby coal-fired power plants are required to generate Small Technology Certificates (STCs) for each unit of electricity produced, which they then purchase. However, the cost of these STCs is concealed within consumers’ electricity bills, resulting in unwitting subsidies for their neighbors’ transition to solar energy and the subsequent elimination of their own electricity bills. Unfortunately, this subsidy system tends to benefit homeowners and more affluent individuals, leaving renters, pensioners, and lower-income earners at a disadvantage.
It is noteworthy that the average Australian solar bill includes a staggering $1,300 in Greenie subsidies, contributing to the country’s relatively high electricity prices in comparison to China, where electricity costs a mere 8 cents per kilowatt-hour (kWh) in US currency. Curiously, despite China’s heavy reliance on Australian coal (with 1,147 coal-fired plants currently under construction), Australian politicians have been shutting down the nation’s remaining coal-fired plants in a bid to protect the environment. However, this decision carries significant implications for the agricultural and manufacturing sectors.
Although the STC program poses its challenges, it continues to attract approximately 1,500 to 1,700 individuals daily who choose to embrace solar energy, thereby reducing their dependence on the traditional power grid. By adopting a battery solar system, consumers can achieve a remarkable 90 percent or higher degree of independence from the grid, safeguarding themselves against future price increases. It is worth noting that the STC program will remain operational for the next nine years, gradually decreasing each year, but it is susceptible to termination at any time. Therefore, interested parties are advised to seize the opportunity while it still exists.