The Small-scale Renewable Energy Scheme (SRES) is a federal government initiative in Australia that aims to promote the installation of small-scale renewable energy systems such as Solar power systems. Under this scheme, households and businesses that install eligible Solar power systems are rewarded with small-scale technology certificates (STCs).
The number of STCs received depends on two main factors: the size of the Solar power system and its location. The size of the system is measured in kilowatts (kW) and its location is determined by the zone in which the installation takes place. The government has divided Australia into four zones, with each zone having a different rating based on the Solar resources available.
Once the Solar power system is installed and the necessary paperwork is completed, the system owner is issued with a certain number of STCs. These STCs represent the amount of renewable energy that the system is expected to generate over a specified period, usually 15 years. The system owner can then either keep these certificates or sell them on the open market.
The purpose of the STCs is to provide a financial incentive for the installation of Solar power systems by reducing the upfront cost. The market value of STCs can fluctuate based on supply and demand dynamics, but generally, the more STCs a system owner has, the greater the financial benefit they can receive from selling them.
Overall, the Small-scale Renewable Energy Scheme (SRES) encourages the adoption of small-scale renewable energy systems, particularly Solar power, by providing a financial incentive in the form of small-scale technology certificates (STCs). This scheme helps to reduce greenhouse gas emissions, promote renewable energy generation, and contribute to Australia’s energy transition towards a more sustainable future.