The Small-scale Renewable Energy Scheme (SRES) is a government program in Australia that incentivizes the adoption of Solar power systems by providing small-scale technology certificates (STCs) to eligible system owners. These certificates represent the environmental benefits of generating renewable energy and can be traded and sold to electricity retailers.
The number of STCs awarded to a Solar power system is determined by several factors, including its location, size, and the amount of electricity it can generate over a specific period. The more renewable energy a system can produce, the more STCs it can earn.
Electricity retailers are required to meet certain renewable energy obligations, and they can use the STCs they purchase from Solar power system owners to fulfill these obligations. This creates a market for STCs, and their value can fluctuate depending on supply and demand dynamics.
The SRES aims to reduce greenhouse gas emissions and increase the use of renewable energy sources in Australia. By providing financial incentives to Solar power system owners, it encourages the adoption of clean energy technology and helps to create a more sustainable energy sector.