The Small-scale Renewable Energy Scheme (SRES) is a government program in Australia that provides financial incentives for residential and small business customers to install renewable energy systems such as Solar panels, wind turbines, or Solar water heaters.
Under the scheme, customers receive a Rebate in the form of Small-scale Technology Certificates (STCs). These certificates represent the amount of renewable energy that the system is expected to generate over its lifetime. The number of STCs received depends on the size and location of the system, as well as its expected energy production.
Once the system is installed and operational, the customer can create STCs based on the system’s expected energy production. These certificates can then be sold or traded on the market to electricity retailers or other entities that have a legal obligation to purchase them. The revenue generated from selling the STCs can help offset the upfront cost of installing the renewable energy system.
The value of STCs can fluctuate based on market demand and supply. The government sets a target each year for the number of STCs that need to be created, which helps to drive the demand for them. As the market for STCs is driven by the government target, it provides a stable and predictable mechanism for customers to receive financial incentives for installing renewable energy systems.
Overall, the Small-scale Renewable Energy Scheme (SRES) aims to encourage the adoption of small-scale renewable energy systems by making them more financially accessible for residential and small business customers. By providing financial incentives through the sale or trade of STCs, the scheme helps to reduce the cost barrier associated with installing renewable energy systems and promotes the use of clean and sustainable energy sources.