STCs are a form of government incentive to promote the installation of renewable energy systems, such as Solar panels. By creating a market for these certificates, the government aims to reduce the upfront cost of installing Solar systems and encourage more households and businesses to invest in renewable energy.
The value of STCs can fluctuate depending on market demand and government policies. Electricity retailers purchase STCs to meet their renewable energy targets, which are set by the government. By buying STCs, retailers can offset their carbon emissions and demonstrate their commitment to sustainability.
The process of selling STCs involves registering the Solar system with the Clean Energy Regulator, which issues the certificates based on the system’s size and location. Once the certificates are created, they can be sold on the open market to electricity retailers or other entities looking to offset their carbon footprint.
Overall, STCs play a crucial role in incentivizing the adoption of renewable energy technologies and helping Australia transition to a cleaner and more sustainable energy future.
