The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that encourages the installation of small-scale renewable energy systems, primarily Solar panels, in residential and small business properties. Under this scheme, eligible participants can receive Small-scale Technology Certificates (STCs) based on the size and location of their Solar system.
The number of STCs a participant receives is determined by the amount of renewable energy the system is expected to generate over its lifetime. This calculation takes into account factors such as the size of the system, the location’s Solar radiation levels, and the number of years the system is anticipated to operate effectively.
Once the Solar system is installed and accredited, the participant can create STCs and sell them to electricity retailers or other buyers. The revenue generated from selling these certificates can help offset the upfront cost of the Solar panel installation, making renewable energy more affordable for homeowners and small businesses.
The value of each STC is not fixed and can fluctuate based on supply and demand dynamics in the market. The government sets a target each year for the number of STCs that need to be created, creating a demand for these certificates from electricity retailers who are obligated to purchase them to meet their renewable energy targets.
Overall, the Small-scale Renewable Energy Scheme aims to support the adoption of small-scale renewable energy systems and reduce greenhouse gas emissions by providing financial incentives for individuals and businesses to invest in Solar panels and other renewable energy technologies.