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, wind turbines, and Solar water heaters. The scheme provides financial incentives to individuals and organizations who install these systems by awarding them small-scale technology certificates (STCs).
STCs represent the amount of renewable energy that a system is expected to generate over its lifetime. The number of STCs awarded to a system depends on factors such as the size of the system and its location.
Once awarded, these STCs can be sold in the market to electricity retailers. The retailers are required by law to purchase a certain number of STCs each year to meet their renewable energy targets. The value of STCs is determined by market demand and can vary over time. When the market demand for STCs is high, the value of each certificate increases, providing a higher financial incentive to system owners.
The SRES has been successful in promoting the uptake of small-scale renewable energy systems in Australia. The financial incentives provided through STCs make these systems more affordable for homeowners, small businesses, and community organizations, making renewable energy more accessible to a wider range of people.
By encouraging the installation of small-scale renewable energy systems, the SRES helps reduce greenhouse gas emissions, increase renewable energy generation, and contribute to the transition to a cleaner and more sustainable energy future.