STCs are a form of government incentive in Australia that aims to promote the uptake of renewable energy sources, particularly Solar power. They are created under the Small-scale Renewable Energy Scheme (SRES), which is administered by the Clean Energy Regulator.
When a Solar system is installed, it is eligible for a certain number of STCs based on its size and location. These certificates represent the amount of renewable energy that the system is expected to generate over its lifetime. The larger the system and the sunnier the location, the more STCs it will receive.
Once the Solar system is installed and the STCs are issued, they can be sold to electricity retailers or registered agents in the market. These retailers have a legal obligation to surrender a certain number of STCs each year to demonstrate that they are supporting the growth of renewable energy.
The price of STCs is determined by supply and demand in the market. The higher the demand for STCs, the higher their price will be. By selling the STCs, Solar system owners can receive a financial benefit, reducing the upfront cost of their Solar installation.
The value of STCs can vary over time, as government policies and market conditions change. It is important for Solar system owners to be aware of the current market value of STCs to ensure they receive the best possible Rebate for their Solar system.