STCs provide a financial incentive for the installation of Solar power systems by reducing the upfront cost for homeowners and businesses. This helps to promote the uptake of renewable energy technologies and reduce greenhouse gas emissions.
To be eligible for STCs, the Solar power system must be installed by a Clean Energy Council accredited installer and meet certain technical requirements. The number of STCs generated is calculated based on the amount of electricity the system is expected to produce over its lifetime, as well as the location of the installation.
STCs can be traded on the open market, allowing installers to sell them for cash or discounts on the cost of the Solar system. Electricity retailers can purchase STCs to meet their renewable energy targets under the Renewable Energy Target scheme.
Overall, STCs play a key role in incentivizing the uptake of Solar power systems and promoting renewable energy generation in Australia.
