By purchasing STCs, electricity retailers or brokers can meet their obligations under the Small-scale Renewable Energy Scheme (SRES), which is a government initiative aimed at encouraging the installation of small-scale renewable energy systems.
The value of STCs is determined by market demand and can fluctuate over time. The price of STCs can be influenced by factors such as changes in government policy, the supply and demand dynamics of the market, and the overall level of investment in renewable energy.
The process of selling STCs involves registering the Solar panel system with the Clean Energy Regulator and creating the corresponding number of STCs. These certificates can then be sold through an online trading platform, where buyers can purchase them to meet their compliance obligations.
The revenue generated from the sale of STCs can help offset the upfront costs of installing a Solar panel system, making it more financially viable for individuals and businesses to invest in renewable energy.
In summary, STCs are a mechanism under the SRES that incentivize the adoption of small-scale Solar panel systems by allowing their owners to generate and sell certificates based on their expected electricity generation. This helps promote the growth of renewable energy and supports Australia’s transition to a cleaner and more sustainable energy future.