The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that aims to promote the adoption of small-scale renewable energy systems, particularly Solar panel systems. It provides financial incentives to encourage individuals and businesses to install these systems by creating small-scale technology certificates (STCs).
Under the SRES, system owners are eligible to receive a certain number of STCs based on the size of their system, its location, and the expected electricity generation over its lifetime. The STCs can be sold or traded to electricity retailers, who are obligated to purchase a certain number of certificates each year. By selling these certificates, system owners can receive a financial benefit that helps offset the cost of installing the system.
The financial benefit from selling the STCs is typically passed on to the customer as a discount on the installation cost. This makes the upfront cost of installing a Solar panel system more affordable and encourages more people to invest in renewable energy.
The number of STCs received for a system depends on several factors, including the size of the system (up to 100 kW), the location (zones are classified based on Solar radiation levels), and the estimated electricity generation over its lifetime. As a general rule, the more electricity a system is expected to generate, the more STCs it will receive.
The SRES is designed to gradually phase out over time. From January 1, 2017, the number of STCs created for new systems decreases each year until it reaches zero in 2030. This phase-out is aimed at ensuring a smooth transition towards a sustainable and self-sufficient renewable energy market.
Overall, the SRES provides financial incentives to encourage the adoption of small-scale renewable energy systems, particularly Solar panel systems. By creating and selling small-scale technology certificates, system owners can offset the installation cost and make renewable energy more accessible and affordable for customers.