The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that aims to encourage the uptake of small-scale renewable energy systems. Under this scheme, homeowners and small businesses can receive financial incentives in the form of Small-scale Technology Certificates (STCs) when they install eligible renewable energy systems such as Solar panels, wind turbines, or Solar water heaters.
The value of the STCs is determined based on various factors including the size of the system, its location, and the time of installation. These certificates have a market value and can be traded or sold to liable entities such as electricity retailers, who are required by law to purchase a certain number of certificates each year to meet their renewable energy obligations.
The number of STCs that can be claimed for a particular system is calculated using an equation that considers the amount of renewable energy it is expected to generate over a set period, known as the deeming period. The deeming period for Solar panels is typically 15 years, while for Solar water heaters it is 10 years.
By providing financial incentives through the SRES, the government aims to make small-scale renewable energy systems more affordable and accessible to homeowners and small businesses. This encourages the transition to clean energy sources, reduces greenhouse gas emissions, and supports the growth of the renewable energy industry.