The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia aimed at promoting the use of renewable energy sources, particularly Solar power. Under this scheme, individuals or businesses that install eligible Solar power systems can receive financial incentives in the form of Small-scale Technology Certificates (STCs).
The number of STCs that a Solar power system owner can receive is determined by the amount of renewable energy the system is expected to generate over a certain period, usually 15 years. The more energy the system is expected to generate, the more STCs it will receive.
STCs can be created when the system is installed and registered under the SRES. Once created, these certificates can be sold or traded to registered agents in the market. The agents, usually electricity retailers, can then use the STCs to meet their own obligations under the Renewable Energy Target (RET) scheme. The RET requires electricity retailers to source a certain percentage of their energy from renewable sources.
The value of STCs is not fixed and can fluctuate depending on market demand and supply. The price of STCs is influenced by factors such as the level of demand for Solar power systems, the amount of renewable energy generated, and any changes in government policies or regulations.
The financial incentives provided through the SRES can significantly reduce the upfront costs of installing a Solar power system, making it more affordable for individuals and businesses. The scheme has been successful in promoting the uptake of Solar power systems across Australia, helping to reduce greenhouse gas emissions and dependence on fossil fuels.
It is important to note that the SRES is subject to change, and the government periodically reviews and adjusts the scheme based on market conditions and policy objectives.