The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that aims to encourage the installation of small-scale renewable energy systems, such as Solar panels, by providing financial incentives. The scheme allows homeowners and small businesses to generate Small-scale Technology Certificates (STCs) for every megawatt-hour of electricity their Solar system produces.
STCs are a form of currency that represent the environmental benefits of generating renewable energy. The number of STCs generated depends on factors like the size of the system, its location, and the amount of electricity it is expected to generate over its lifetime. These STCs can then be sold on the open market to electricity retailers, who have an obligation to purchase a certain number of STCs to meet their renewable energy targets.
The value of STCs fluctuates depending on supply and demand, but they are typically traded at a market price. Homeowners and small businesses can sell their STCs to registered agents or brokers, who will then transfer the financial benefit to them. The revenue generated from selling STCs helps offset the upfront cost of installing the Solar panels, making the investment more affordable.
The SRES provides a financial incentive for individuals and small businesses to adopt renewable energy systems, reducing their reliance on traditional fossil fuel-based electricity generation. By encouraging the uptake of small-scale renewable energy, the scheme contributes to Australia’s overall renewable energy target and helps to reduce greenhouse gas emissions in the country.
It’s important to note that the SRES is subject to periodic reviews, and the level of incentives provided may change over time. Therefore, it is recommended to consult the relevant government agencies or authorities for up-to-date information on the scheme and its eligibility requirements.