STCs are a form of renewable energy currency in Australia, created under the Renewable Energy Target (RET) scheme. The RET scheme is designed to encourage the growth of renewable energy generation and reduce greenhouse gas emissions.
Under the scheme, Solar panel system owners are eligible to create STCs based on the amount of electricity their system is expected to generate over a certain period. The number of STCs is determined by the system’s location, size, and the amount of electricity it is projected to produce over a 15-year period.
Once the STCs are created, they can be sold to electricity retailers or other market participants. The price of STCs can fluctuate based on supply and demand dynamics in the market. If the demand for STCs exceeds the supply, the price can increase, and vice versa.
The financial incentive provided by STCs can help reduce the upfront cost of installing a Solar panel system, making it more affordable for individuals and businesses. The value of STCs can be calculated using a formula set by the government, and the exact amount of financial benefit can vary depending on market conditions.
It’s important to note that the STC scheme is subject to periodic reviews and potential changes by the government. Therefore, it is advisable to consult with a qualified Solar installer or industry professional to understand the current regulations and incentives applicable to installing Solar panels.