The Small-scale Renewable Energy Scheme (SRES) is a government program in Australia that aims to promote the use of small-scale renewable energy systems, particularly Solar panels. It provides financial incentives to individuals and businesses who install eligible Solar panel systems.
The main incentive offered under the SRES is the Small-scale Technology Certificates (STCs). These certificates are created for each megawatt-hour of electricity that a Solar panel system is expected to generate over a certain period of time, based on its location, size, and efficiency. The number of STCs received by an installation depends on these factors.
Once the Solar panel system is installed and registered under the SRES, the owner can create and trade STCs. Electricity retailers are obligated by law to acquire a certain number of STCs each year, based on the amount of electricity they sell. This creates a market for the certificates, and owners can sell their STCs to retailers or other market participants.
The value of STCs is not fixed and varies depending on market conditions, such as supply and demand. The value is determined by market forces, with prices fluctuating over time. The value of STCs can impact the overall cost of installing a Solar panel system, as it represents a financial benefit that can offset the upfront costs.
Overall, the SRES and the STCs aim to incentivize the adoption of small-scale renewable energy systems, such as Solar panels, by providing a financial benefit to owners. The scheme helps reduce greenhouse gas emissions and promotes the use of clean energy sources in Australia.