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, specifically Solar photovoltaic (PV) systems, by providing financial incentives to eligible participants.
Under the scheme, homeowners, small businesses, and community organizations who install eligible Solar PV systems are eligible to receive Small-scale Technology Certificates (STCs). STCs are tradable certificates that represent the environmental benefits of generating renewable energy.
The value of the Rebate provided through the SRES depends on various factors, including the size and location of the installed system, as well as the market price of STCs. The scheme uses a system called the “small-scale technology percentage” to determine the number of STCs that can be created for each system. This percentage decreases over time, which means that the Rebate value may decrease for systems installed in later years.
The STCs can be created and traded through the Renewable Energy Certificate (REC) market. Participants can either trade their STCs themselves or assign them to an agent who can trade them on their behalf. The market price of STCs fluctuates depending on supply and demand, which can also impact the final value of the Rebate.
Overall, the SRES aims to make Solar PV systems more affordable and accessible to individuals and organizations, encouraging the adoption of renewable energy and reducing greenhouse gas emissions in Australia.