Small-scale Technology Certificates (STCs): These are tradable certificates that can be created for eligible solar panel systems, solar water heaters, and heat pump systems. The number of STCs received depends on the system’s size, location, and installation date. Homeowners can either claim the STCs themselves or assign them to a registered agent who will provide a discount on the system’s purchase price.

STCs were introduced as a financial incentive to encourage the uptake of renewable energy systems in Australia. The certificates are created when a system is installed, and they can be sold on the open market to liable entities, such as electricity retailers, who are required to purchase a certain number of certificates each year to meet their renewable energy targets.

The value of STCs fluctuates based on supply and demand in the market, so homeowners may choose to sell them immediately after installation or hold onto them in hopes of a higher price in the future. The amount of STCs received also decreases over time as the government aims to gradually phase out the incentive as renewable energy becomes more mainstream.

Overall, STCs can help offset the upfront cost of installing a Solar panel system or other eligible technology, making renewable energy more affordable for homeowners. Additionally, they contribute to reducing greenhouse gas emissions and transitioning towards a more sustainable energy future.