Small-scale Technology Certificates (STCs): These are created for solar power systems with a capacity of up to 100 kilowatts. The number of STCs a system is eligible for depends on factors such as the size of the system and the location. These certificates can be traded and sold to offset the cost of installing solar panels.

February 9, 2024by Luke0


STCs are a form of financial incentive provided by the Australian government to encourage the adoption of small-scale renewable energy systems, specifically Solar power. The government establishes a fixed number of STCs that a Solar power system is eligible for, based on factors like system size and location.

The number of STCs a system can claim is calculated using the Small-scale Renewable Energy Scheme (SRES) formula, which takes into account the expected electricity generation of the system over a 15-year period. The more electricity a system is expected to generate, the more STCs it is eligible for.

Once a Solar power system is installed, the owner can create and register the corresponding STCs. These certificates can then be traded on the open market, allowing Solar installers or other entities to purchase them. The revenue generated from selling STCs can help offset the upfront cost of installing Solar panels, making it more affordable for individuals and businesses to invest in Solar power.

The value of STCs can fluctuate due to supply and demand dynamics in the market. The government sets a maximum price for STCs, known as the Small-scale Technology Percentage (STP), which decreases over time. This gradual decline in the STP encourages early adoption of Solar power systems.

In summary, STCs provide a financial incentive for installing Solar power systems by allowing the sale of these certificates to offset the installation costs. This scheme helps promote the adoption of renewable energy and contributes to reducing greenhouse gas emissions in Australia.

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