The Small-scale Renewable Energy Scheme (SRES) is a government program in Australia that provides financial incentives to encourage the installation of small-scale renewable energy systems, particularly Solar energy systems. The scheme aims to reduce greenhouse gas emissions and increase the share of renewable energy in Australia’s energy mix.
Under the SRES, eligible Solar energy systems, including Solar panels, Solar water heaters, and heat pump systems, can generate Small-scale Technology Certificates (STCs). These certificates represent the environmental benefits of the renewable energy generated by the system over its lifetime.
The number of STCs that a Solar energy system can generate depends on two main factors: the size of the system and the location. The size of the system is measured in kilowatts (kW) and determines the amount of renewable energy it can generate. The location is important because it affects the amount of Solar radiation received by the system, which in turn determines its energy generation potential.
Once a Solar energy system is installed and operational, the owner can create STCs for the system. These STCs can then be sold to electricity retailers, who are obliged by law to acquire a certain number of STCs each year. The revenue generated from selling the STCs can be used to offset the upfront cost of installing the Solar panels, making Solar energy more affordable for consumers.
The value of STCs can vary over time, depending on market demand and other factors. The SRES sets a target each year for the number of STCs that need to be created, which helps to maintain a stable market for these certificates.
Overall, the Small-scale Renewable Energy Scheme provides a financial incentive for individuals and businesses to invest in Solar energy systems, helping to increase the adoption of renewable energy and reduce reliance on fossil fuels.