By selling STCs, homeowners or businesses can offset the upfront cost of installing a small-scale renewable energy system, making it more affordable. The value of each STC is determined by market demand and can fluctuate over time. The scheme is designed to encourage the uptake of renewable energy systems and reduce greenhouse gas emissions.
To participate in the STC scheme, homeowners or businesses must first have their system installed by an accredited installer. The installer will then create the necessary documentation and assign the STCs to the system owner. These STCs can then be either traded on the open market or sold to electricity retailers.
The number of STCs a system is eligible for is determined by the Small-scale Renewable Energy Target (SRES) scheme. The SRES assigns a certain number of STCs to each megawatt-hour (MWh) of electricity the system is expected to generate over its lifetime. The higher the electricity generation, the more STCs the system is eligible for.
The STC scheme provides a financial incentive for homeowners and businesses to invest in small-scale renewable energy systems, such as Solar panels. It helps to make these systems more affordable and encourages the adoption of renewable energy sources. Additionally, it assists in meeting Australia’s renewable energy targets and reducing reliance on fossil fuels.