This Rebate aims to encourage the uptake of Solar energy systems by providing a financial incentive. The number of STCs generated is determined by the system’s capacity to produce renewable energy over its lifetime, expressed in megawatt-hours (MWh). The more renewable energy a system can produce, the more STCs it can generate.
The price of STCs is market-driven and fluctuates based on supply and demand. The value of the STCs can be deducted directly from the purchase price of the Solar energy system or sold to electricity retailers. The amount of money earned from selling the STCs depends on the market price at the time of sale.
To participate in the scheme, homeowners and small businesses must ensure that their Solar energy system meets certain requirements, including being installed by a Clean Energy Council (CEC) accredited installer and using approved Solar panels and inverters. Once the system is installed, the owner can create the STCs through the online REC Registry.
The STCs can then be sold through the STC Clearing House, where electricity retailers purchase them to meet their renewable energy obligations. Alternatively, the STCs can be sold on the open market to other entities that need to meet their renewable energy targets.
By providing a financial incentive, the Small-scale Renewable Energy Scheme encourages the adoption of Solar energy systems, reduces greenhouse gas emissions, and helps Australia transition towards a cleaner and more sustainable energy future.