STCs are essentially a form of currency that represent the environmental benefits of generating clean energy. They are created when eligible small-scale renewable energy systems are installed and are calculated based on the amount of electricity the system is expected to generate over a certain period of time.
The process of receiving STCs starts with the installation of a small-scale renewable energy system, such as Solar panels. The installer will then create the STCs on your behalf and assign them to you. The number of STCs you receive is determined by the size of your system and its location, as areas with higher Solar radiation are considered to generate more renewable energy.
Once you have received the STCs, you have the option to trade or sell them to electricity retailers. These retailers have an obligation to purchase a certain number of STCs each year as part of their renewable energy target. By selling your STCs to these retailers, you can generate additional income that can be used to offset the cost of your Solar system. The price of STCs can vary depending on supply and demand, and it is recommended to research the market before selling them.
It is important to note that the value of STCs can change over time due to various factors, such as changes in government policy or market conditions. Therefore, it is advisable to consult with a qualified professional or industry expert to understand the current regulations and market dynamics before making any decisions regarding STCs.