STCs are a form of financial incentive provided by the Australian government to promote the adoption of renewable energy, specifically Solar power. The Rebate is available for residential, commercial, and industrial Solar energy systems with a capacity of up to 100 kilowatts.
The value of STCs is determined by several factors, including the location, size, and installation date of the Solar system. The Rebate is calculated based on the expected electricity generation of the system over a 15-year period.
When eligible Solar panels are installed, STCs are created. These certificates represent the environmental benefit of generating clean energy and reducing greenhouse gas emissions. The number of STCs generated depends on the size and location of the system.
STCs can be sold to electricity retailers or brokers, who are obligated by the government to purchase a certain number of certificates each year. By selling the STCs, system owners can offset a portion of the upfront cost of their Solar energy system.
The process of selling STCs involves registering the system with the Clean Energy Regulator and creating the certificates. The certificates can then be sold on the open market, where their value can fluctuate depending on supply and demand.
Overall, STCs provide a financial incentive for individuals and businesses to invest in Solar energy systems, helping to reduce greenhouse gas emissions and promote the transition to clean, renewable energy sources.