Small-scale Technology Certificates (STCs): These are tradable certificates created for eligible 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 location, system size, and installation date. These certificates can be sold to electricity retailers, who are required by law to acquire a certain number of STCs each year.

February 11, 2024by Luke0

By purchasing STCs from Solar power system owners, electricity retailers can meet their renewable energy targets and reduce their carbon emissions. The price of STCs is determined by supply and demand in the market, and it can fluctuate over time.

The process of acquiring STCs involves the following steps:

1. Registration: The Solar power system owner must register their system with the Clean Energy Regulator (CER), providing details such as system size, location, and installation date.

2. Calculation: The CER calculates the number of STCs the system is eligible for based on factors like the system’s location, size, and installation date. The higher the Solar resource in a particular area, the more STCs the system is eligible for.

3. Creation: Once the system is registered and the number of STCs is determined, the CER creates the equivalent number of STCs and adds them to the system owner’s account in the STC Registry.

4. Sale: The system owner can then sell their STCs to electricity retailers or other entities that have an obligation to acquire a certain number of STCs each year. The price of STCs is negotiated between the buyer and the seller and is usually paid as a discount on the system’s upfront cost.

5. Surrender: Once an electricity retailer purchases STCs, they must surrender them to the CER as evidence of their compliance with their renewable energy obligations.

The purpose of the STC scheme is to incentivize the installation of small-scale Solar power systems by providing a financial benefit to system owners. This stimulates the growth of the renewable energy sector and helps Australia achieve its renewable energy targets.

Share on:

Leave a Reply

Your email address will not be published. Required fields are marked *