The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that encourages the adoption of small-scale renewable energy systems by providing financial incentives.
Under the SRES, homeowners and businesses that install small-scale Solar panel systems, wind turbines, or hydro systems are eligible to receive small-scale technology certificates (STCs). The number of STCs awarded depends on the amount of renewable energy the system is expected to generate over its lifetime.
The STCs can be sold to electricity retailers, who are obligated to purchase a certain number of STCs each year to meet their renewable energy targets. By selling the STCs, system owners can offset a portion of the upfront cost of the renewable energy system.
The value of STCs varies based on market conditions and demand. The number of STCs awarded for a particular system is determined by the system’s location, the amount of renewable energy it is expected to generate, and the market price of STCs at the time of installation.
The SRES has been successful in promoting the installation of small-scale renewable energy systems across Australia. It has helped reduce greenhouse gas emissions by displacing fossil fuel-based electricity generation and has contributed to the growth of the renewable energy industry in the country.