The Small-scale Renewable Energy Scheme (SRES) is an Australian government initiative designed to encourage the adoption of renewable energy technologies at the residential and small business level. Under this scheme, homeowners and small businesses who install eligible Solar panels, Solar water heaters, and heat pumps can receive Small-scale Technology Certificates (STCs).
STCs represent the amount of electricity the system is expected to generate over a set period, and the number of STCs awarded depends on factors such as the size of the system, its location, and the technology used. The more electricity the system is expected to generate, the more STCs it will receive.
Once the Solar panels, Solar water heaters, or heat pumps are installed and approved, the homeowner or business owner can create STCs for their system. These STCs can then be traded on the open market or sold to registered agents or entities known as liable entities, such as electricity retailers.
The value of the STCs is determined by supply and demand in the market. The purpose of trading and selling STCs is to help homeowners and small businesses offset the upfront cost of installing the renewable energy system. The revenue generated from selling STCs can be used to reduce the cost of the system or to recoup some of the initial investment.
In summary, the Small-scale Renewable Energy Scheme (SRES) allows homeowners and small businesses in Australia to receive Small-scale Technology Certificates (STCs) for installing eligible Solar panels, Solar water heaters, and heat pumps. These STCs can be traded and sold to help offset the upfront cost of the system.