Small-scale Renewable Energy Scheme (SRES): The SRES is a federal government program that provides a financial incentive for the installation of small-scale solar energy systems, including solar panels and solar water heaters. Under this scheme, homeowners and businesses can create Small-scale Technology Certificates (STCs) for their solar systems. These STCs can then be sold to electricity retailers or agents, who are obligated to buy a certain amount of them each year. The value of STCs depends on factors such as the size of the system and the location, and it is deducted from the upfront cost of the solar system.

February 1, 2024by Luke0

The SRES aims to encourage the uptake of small-scale renewable energy systems by reducing the upfront cost for consumers. By creating STCs, homeowners and businesses can receive a financial benefit for their investment in Solar energy.

The number of STCs that can be created for a particular Solar system is determined by the amount of renewable energy it is expected to generate over a 15-year period. This is called the Small-scale Renewable Energy Target (SRET). The SRET is calculated based on the system’s capacity and the geographical location, as different areas receive different amounts of sunlight.

Once the Solar system is installed and operational, the homeowner or business can register it with the Clean Energy Regulator to create the STCs. The number of STCs created is then multiplied by the market price, which is determined by supply and demand dynamics.

Electricity retailers and agents are required by law to purchase a certain number of STCs each year. This creates a market for the STCs, allowing homeowners and businesses to sell them and recover a portion of the upfront cost of their Solar system. The value of the STCs can vary over time due to changes in market conditions and government policies.

Overall, the Small-scale Renewable Energy Scheme provides a financial incentive for the installation of small-scale Solar energy systems, making renewable energy more accessible and affordable for homeowners and businesses.

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