The Small-scale Renewable Energy Scheme (SRES) is a government program in Australia that encourages the installation of small-scale renewable energy systems, particularly Solar power systems. The program aims to reduce greenhouse gas emissions and increase the use of clean energy sources by providing financial incentives to homeowners and businesses.
Under the SRES, homeowners and businesses who install eligible small-scale renewable energy systems, such as Solar photovoltaic (PV) panels, can create Small-scale Technology Certificates (STCs). The number of STCs that can be claimed is based on the expected electricity generation of the installed system over a 15-year period.
The value of STCs is determined by market demand and can fluctuate over time. The STCs can be sold to electricity retailers, who are legally obligated to purchase a certain number of them each year. The revenue generated from selling the STCs can help offset the upfront cost of installing the renewable energy system, making it more affordable for homeowners and businesses.
The SRES is designed to promote the uptake of small-scale renewable energy systems by reducing the payback period and providing a financial incentive for individuals and businesses to invest in clean energy technology. By increasing the installation of Solar power systems, the scheme contributes to the reduction of greenhouse gas emissions and supports the transition to a more sustainable and low-carbon energy system.