Small-scale Technology Certificates (STCs): The STC scheme provides rebates for small-scale solar panel systems (up to 100 kilowatts) and solar water heaters. The number of STCs received depends on the size of the system, the location, and the amount of electricity it is expected to generate over its lifetime. These certificates can be traded and sold to electricity retailers, which helps to offset the upfront cost of installing solar panels.

February 5, 2024by Luke0

STCs are a government incentive program in Australia designed to promote the adoption of small-scale renewable energy systems. They are part of the Renewable Energy Target (RET) scheme introduced in 2001.

Under the STC scheme, homeowners and businesses that install eligible small-scale Solar panel systems or Solar water heaters are entitled to receive a certain number of STCs, depending on the size and location of the system. The number of STCs awarded is determined by the amount of renewable energy the system is expected to generate over its lifetime, as calculated by the government’s Clean Energy Regulator.

Once the STCs are awarded, they can be traded and sold on the open market. Electricity retailers are required by law to buy a certain number of STCs each year to meet their renewable energy obligations. By selling their STCs to retailers, Solar system owners can receive a financial benefit that helps offset the upfront cost of purchasing and installing the system.

The value of STCs fluctuates based on supply and demand in the market. Generally, the more STCs available, the lower their value. The price of STCs is typically higher when demand for renewable energy is high or when there are fewer STCs available due to factors such as a reduction in the amount of electricity generated from fossil fuels.

The STC scheme has been successful in encouraging the installation of small-scale Solar panel systems and Solar water heaters across Australia. It has helped to lower the cost of renewable energy systems and reduce greenhouse gas emissions.

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