Small-scale Technology Certificates (STCs) are a form of government incentive in Australia designed to promote the installation of Solar power systems. When a Solar power system is installed, a certain number of STCs are generated based on the size of the system and its location.
These certificates can be traded in the market and sold to electricity retailers. The retailers are mandated by law to acquire a certain number of STCs each year, which helps them meet their renewable energy targets. The value of STCs is not fixed and can fluctuate depending on market demand and other factors.
The process of selling STCs involves registering the Solar power system with the Clean Energy Regulator and creating the corresponding number of certificates. These certificates can then be sold through the STC market, where buyers (typically electricity retailers) purchase them to meet their obligations under the Small-scale Renewable Energy Scheme (SRES).
The value of STCs is influenced by various factors such as market demand, supply of certificates, government policies, and changes in renewable energy targets. The price of STCs can vary over time and may be subject to volatility. However, the overall objective of the STC scheme is to provide financial incentives for the installation of small-scale renewable energy systems, such as Solar panels, to reduce greenhouse gas emissions and promote the use of clean energy sources.