The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that aims to encourage the installation of small-scale renewable energy systems, particularly Solar systems. Under this scheme, homeowners and small businesses that install eligible Solar systems can receive Small-scale Technology Certificates (STCs).
STCs represent the environmental benefits of generating renewable energy and are created for every megawatt-hour of electricity that a system is expected to generate over a certain period (usually 15 years). The number of STCs received depends on various factors, including the size and location of the system, and the amount of electricity it is expected to generate.
Once homeowners or small businesses receive the STCs, they can choose to sell them to electricity retailers in a process known as the “STC market.” The price of STCs is determined by supply and demand, and it can fluctuate. By selling the STCs, homeowners and small businesses can offset the upfront cost of their Solar system, making it more affordable.
The SRES is designed to provide financial incentives for the adoption of renewable energy technologies by reducing the cost of installation. It has been successful in encouraging the uptake of Solar energy systems across Australia and has contributed to the country’s transition towards a cleaner and more sustainable energy future.