Small-scale Technology Certificates (STCs): STCs are a form of tradable renewable energy currency. When you install a solar panel system, you can create STCs based on the amount of renewable energy it is expected to produce over a certain period of time (usually 15 years). These STCs can then be sold to electricity retailers, who are required by law to buy a certain number of STCs each year. The amount of STCs you can create depends on the size of your system and the location of your installation.

February 8, 2024by Luke0

STCs serve as an incentive for individuals and businesses to invest in renewable energy systems by providing a financial benefit. The process of creating and selling STCs involves several steps:

1. Registration: To create STCs, you need to register your Solar panel system with the Clean Energy Regulator (CER) or an agent accredited by the CER. This registration confirms that your system meets the necessary requirements for generating renewable energy.

2. Calculation: The number of STCs you can create is determined by a formula that takes into account the size of your system and the location of your installation. The larger the system and the sunnier the location, the more STCs you can generate.

3. Creation: Once registered, you can create STCs for your system. The creation process involves generating certificates equal to the expected amount of renewable energy your system will produce over the designated period (usually 15 years). Each certificate represents one megawatt-hour (MWh) of renewable energy.

4. Certification: The created STCs must be validated by an accredited agent who verifies that the installation meets the necessary criteria and that the renewable energy generation is accurately calculated.

5. Sale: After certification, you can sell the STCs to electricity retailers. Retailers are required by the Renewable Energy Target (RET) legislation to acquire and surrender a certain number of STCs each year to demonstrate their compliance with the renewable energy targets.

6. Trading: The STCs are traded on a market platform, such as the Australian Securities Exchange (ASX), where buyers and sellers negotiate prices based on supply and demand. The price of STCs can fluctuate depending on various factors, such as market conditions and government policies.

By selling STCs, system owners can receive a financial benefit, which helps offset the cost of their renewable energy investment. The value of STCs can vary, but it generally provides an additional source of income for Solar panel system owners.

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