These STCs can then be sold or traded to energy retailers, who are required by law to purchase a certain number of STCs each year. The number of STCs received depends on the size and location of the Solar power system, as well as the amount of electricity it is expected to generate over its lifetime.
The value of STCs fluctuates depending on market conditions, but they can provide a significant financial incentive for installing Solar power systems. The value of STCs is typically deducted from the upfront cost of the system, reducing the out-of-pocket expense for the homeowner or business.
The SRES is administered by the Clean Energy Regulator, which sets the number of STCs that need to be created each year. This number is based on the amount of renewable energy the government wants to encourage and the overall target for reducing greenhouse gas emissions.
To be eligible for STCs, the Solar power system must be installed by a Clean Energy Council (CEC) accredited installer and use approved components. The system must also meet certain safety and performance standards.
It’s important to note that the SRES is subject to review and may be phased out or modified in the future. However, as of now, it remains the primary Rebate program for small-scale Solar power systems in Australia.