The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that aims to promote the installation of Solar panels on residential and small business properties. Under this scheme, eligible installations are awarded Small-scale Technology Certificates (STCs) based on the size of the system and its location.
The number of STCs received is determined by the amount of renewable energy the system is estimated to generate over the course of its lifetime. This estimation is based on factors such as the size of the system, its geographical location, and the amount of sunlight it is likely to receive.
Once the Solar panels are installed and the STCs are issued, they can be traded on the open market. Electricity retailers are required to purchase a certain number of STCs each year to meet their renewable energy obligations. By selling the STCs, homeowners and small business owners can offset the upfront cost of installing Solar panels, making renewable energy more affordable and accessible.
The value of STCs varies depending on market conditions and demand. The price of STCs can fluctuate, but they generally provide a significant financial incentive for those considering Solar installations.
The SRES has been instrumental in driving the adoption of Solar energy in Australia, with over 2 million Solar installations supported since its inception. It has contributed to the reduction of greenhouse gas emissions and the transition to a cleaner and more sustainable energy future.