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, particularly Solar power systems, by providing financial incentives to eligible system owners.
Under the scheme, eligible small-scale renewable energy systems, such as Solar panels and Solar water heaters, are assigned a certain number of small-scale technology certificates (STCs) based on the amount of renewable energy they are expected to generate over their lifetime. The number of STCs is determined by factors such as the system’s location, capacity, and the amount of electricity it is estimated to displace from the grid.
These STCs can then be created, traded, and sold to electricity retailers, who are obligated to purchase a certain number of certificates each year to meet their renewable energy targets. The value of STCs is not fixed and fluctuates based on supply and demand in the market.
By creating a financial benefit for small-scale renewable energy system owners, the SRES helps offset the upfront costs of purchasing and installing these systems. The value of the STCs can be used as a discount on the purchase price of the system, reducing the payback period and making renewable energy more affordable for consumers.
The Small-scale Renewable Energy Scheme is managed by the Clean Energy Regulator and is available to residential, commercial, and community-based customers across Australia. It has been successful in driving the installation of Solar power systems in the country, contributing to the overall growth of renewable energy generation and reducing greenhouse gas emissions.