Small-scale Technology Certificates (STCs): STCs are a form of tradable currency that can be created when a solar power system is installed. The number of STCs generated depends on the size of the system and the location. These certificates can then be sold to electricity retailers or brokers, who are required by law to buy a certain number of STCs each year. The value of STCs fluctuates based on market demand and supply.

February 13, 2024by Luke0


STCs are a government incentive program in Australia aimed at promoting the use of renewable energy sources, particularly Solar power. The program encourages the installation of small-scale Solar power systems by providing financial incentives to homeowners and businesses.

When a Solar power system is installed, the owner can create STCs based on the size of the system and its location. The number of STCs generated is determined by the Clean Energy Regulator (CER), an independent government body responsible for administering the program. The CER assigns a certain number of STCs to each system based on its estimated electricity generation over a 15-year period.

Once the STCs are created, the owner can sell them to electricity retailers or brokers. These entities are required by law to purchase a certain number of STCs each year, known as the Renewable Energy Target (RET). The RET is set by the government and is designed to ensure that a certain percentage of Australia’s electricity comes from renewable sources.

The value of STCs is not fixed and can fluctuate based on market demand and supply. The price of STCs is influenced by factors such as changes in government policy, the overall demand for renewable energy, and the availability of STCs in the market. As a result, the value of STCs can vary over time.

By selling STCs, Solar power system owners can receive a financial benefit that helps offset the cost of installing the system. This incentivizes the adoption of Solar power and encourages the transition to a more sustainable and environmentally friendly energy source.

Overall, STCs are an important mechanism for promoting the uptake of small-scale Solar power systems in Australia. They provide a means for system owners to receive financial rewards for generating renewable energy, while also helping the country achieve its renewable energy targets.

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