Small-scale Technology Certificates (STCs): These are tradable certificates that can be created when a small-scale solar power system (less than 100 kilowatts) is installed. The number of STCs a system is eligible for depends on the size of the system and the location. These certificates can then be sold or traded to electricity retailers, who are required by law to purchase a certain amount of them each year. The value of STCs is determined by supply and demand, and it can fluctuate over time.

STCs are designed to provide financial incentives for individuals and businesses to invest in renewable energy systems, such as Solar power. By creating a market for these certificates, the government aims to encourage the uptake of clean energy technologies and reduce greenhouse gas emissions.

The process of obtaining STCs involves registering the Solar power system with the Clean Energy Regulator, which administers the scheme. Once the system is installed and the necessary paperwork is submitted, the Regulator will issue the corresponding number of STCs. These certificates can then be sold on the open market, with the price varying depending on factors such as demand for renewable energy and government policy.

In addition to providing a financial benefit to system owners, STCs also help to offset the upfront cost of installing Solar power systems. This can make renewable energy more affordable for households and businesses, leading to greater uptake of clean energy technologies.

Overall, STCs play a crucial role in driving the transition to a clean energy future by incentivizing the adoption of Solar power and other renewable energy systems. By creating a market for these certificates, the scheme helps to support the growth of the renewable energy industry and reduce reliance on fossil fuels.