STCs, or Small-scale Technology Certificates, are a type of financial incentive provided by the Australian federal government to encourage the adoption of renewable energy systems. These certificates are issued to households and small businesses that install eligible Solar panel systems, small wind systems, and small-scale hydro systems.
The value of the STCs is determined based on various factors including the location, size, and installation date of the renewable energy system. The scheme operates on a market-based mechanism, where the value of these certificates fluctuates depending on the supply and demand dynamics in the market.
STCs can be created and traded through the Renewable Energy Certificate (REC) Registry. When a system owner installs an eligible renewable energy system, they create a certain number of STCs based on the system’s energy generation capacity. These STCs can then be sold to liable entities, such as electricity retailers, who are required to surrender a certain number of certificates each year to meet their renewable energy obligations.
By providing financial incentives through the STC scheme, the government aims to make renewable energy systems more affordable and accessible to households and small businesses. This helps reduce greenhouse gas emissions, increase renewable energy generation, and contribute to Australia’s overall energy transition and climate change mitigation efforts.