Small-scale Technology Certificates (STCs): These are tradeable certificates that are created for every 1,000 kilowatt-hours of electricity generated by a solar power system. The number of STCs depends on the location, size, and efficiency of the system. Homeowners and businesses can claim these certificates and sell them to electricity retailers or other buyers, which helps offset the cost of the solar installation.

January 30, 2024by Luke0


STCs, or Small-scale Technology Certificates, are a type of tradeable certificate that is created to incentivize the generation of electricity from small-scale renewable energy systems, particularly Solar power systems. These certificates are created for every 1,000 kilowatt-hours (kWh) of electricity generated by a Solar power system.

The number of STCs that can be claimed for a Solar power system depends on various factors such as the location, size, and efficiency of the system. These factors are used to determine the amount of renewable energy that is displaced by the system, and thus, the number of STCs that can be generated.

Homeowners and businesses that install Solar power systems can claim these STCs and sell them to electricity retailers or other buyers in the market. The revenue generated from selling these certificates helps to offset the upfront cost of installing the Solar system.

The value of STCs is not fixed and can vary depending on market conditions and demand. The price of STCs is determined through a market-based mechanism, where supply and demand dynamics play a role. Typically, the value of STCs decreases over time as the government aims to gradually reduce the financial support provided for small-scale renewable energy systems.

STCs are part of the Australian government’s Renewable Energy Target (RET) scheme, which aims to ensure that 20% of the country’s electricity comes from renewable sources by 2020. By creating a market for these certificates, the government encourages the deployment of small-scale renewable energy systems and helps reduce greenhouse gas emissions from the electricity sector.

Overall, STCs provide a financial incentive for homeowners and businesses to invest in Solar power systems by allowing them to benefit from the sale of these certificates. This helps make Solar installations more affordable and contributes to the growth of renewable energy in Australia.

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