The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that encourages the installation of small-scale renewable energy systems, such as Solar panels, wind turbines, and Solar water heaters. The scheme provides a financial incentive through the creation and sale of Small-scale Technology Certificates (STCs).
When a homeowner or installer installs a small-scale renewable energy system, they can create STCs based on the expected energy generation of the system over a 15-year period. The number of STCs created is determined by the amount of renewable energy the system is expected to generate, with each megawatt-hour (MWh) of renewable energy equal to one STC.
These STCs can then be sold to electricity retailers, who are required by law to purchase a certain number of STCs each year. The value of STCs is not fixed and fluctuates based on market demand and supply. If there is high demand and limited supply of STCs, their value will increase, whereas if there is low demand or oversupply, their value will decrease.
The value of STCs also depends on various factors such as the size of the system, location, and the market conditions. The government sets a price cap for STCs, which is the maximum price that can be paid for each certificate. This price cap is gradually reduced each year to incentivize the installation of renewable energy systems.
The revenue generated from the sale of STCs can significantly offset the upfront cost of installing a small-scale renewable energy system. This Rebate makes renewable energy systems more affordable and encourages the uptake of clean energy technologies.
Overall, the Small-scale Renewable Energy Scheme and the creation of STCs play a crucial role in promoting the adoption of small-scale renewable energy systems in Australia by providing a financial incentive to homeowners and installers.