Small-scale Technology Certificates (STCs): STCs are created when a solar energy system is installed and registered. The number of STCs generated depends on the system’s size, location, and the amount of electricity it is expected to generate over its lifetime. These certificates can be sold to electricity retailers, who are required by law to purchase a certain number of certificates each year. The value of STCs fluctuates depending on supply and demand but can significantly reduce the cost of a solar system.

STCs play a crucial role in incentivizing the installation of Solar energy systems by providing a financial benefit to homeowners and businesses. By selling STCs, system owners can recoup a portion of the upfront costs of installing a Solar system, making it more affordable for them to transition to renewable energy.

The value of STCs is determined by market forces, so it is important for system owners to monitor the market and sell their certificates at the right time to maximize their return. Additionally, the government sets a target for the number of STCs that must be created each year, which helps create demand for these certificates in the market.

Overall, STCs are a key policy mechanism that helps promote the uptake of Solar energy and reduce greenhouse gas emissions. By providing a financial incentive for Solar installations, STCs help drive the transition to a more sustainable energy future.