Small-scale Technology Certificates (STCs) are a government incentive program in Australia designed to promote the installation of small-scale renewable energy systems. These systems include Solar panels, wind turbines, hydro systems, and Solar water heaters.
The number of STCs generated is determined by the size of the system and the location, with each system being assigned a certain number of STCs. The larger the system and the better the Solar resource in that location, the more STCs are generated. These STCs can then be traded or sold to electricity retailers or other entities that have a legal obligation to purchase and surrender a certain number of STCs each year.
The value of STCs is not fixed and can vary depending on market demand. When the demand for STCs is high, the value increases, and when the demand is low, the value decreases. The value of STCs is influenced by factors such as the supply of renewable energy systems being installed, government policies and regulations, and market forces.
By generating and selling STCs, individuals and businesses can offset the cost of installing small-scale renewable energy systems. This helps to make these systems more financially viable and encourages the uptake of renewable energy in Australia.
