The Small-scale Renewable Energy Scheme (SRES) is designed to encourage the installation of small-scale renewable energy systems, including Solar panel systems, in Australia. Under this scheme, homeowners and businesses that install eligible Solar panel systems are entitled to receive a financial subsidy in the form of renewable energy certificates (RECs).
The number of RECs that a Solar panel system is eligible for depends on several factors. The size of the system, measured in kilowatts (kW), determines the number of RECs. Additionally, the geographic location of the system is taken into account, as different regions in Australia receive varying amounts of sunlight. Areas with higher Solar radiation levels are allocated more RECs.
Once the Solar panel system is installed and operational, the homeowner or business owner can claim the RECs. These certificates can then be traded or sold to electricity retailers. The value of the RECs fluctuates based on market conditions and demand. By selling the RECs, the system owner can receive a financial benefit that helps offset the initial cost of installing the Solar panels.
The SRES is administered by the Clean Energy Regulator, and it aims to support the growth of renewable energy in Australia by providing a financial incentive for individuals and businesses to adopt Solar power systems. This scheme has been instrumental in driving the uptake of Solar energy across the country, making Solar power more accessible and affordable for Australians.