Small-scale Technology Certificates (STCs): Under the Small-scale Renewable Energy Scheme, homeowners and small businesses are eligible to receive STCs for installing solar panel systems with a capacity of 100 kilowatts or less. The number of STCs received depends on the size of the system, its location, and the amount of electricity it is expected to generate over its lifetime. These certificates can be traded on the open market to help reduce the cost of the solar panel system.

February 10, 2024by Luke0

STCs are a form of government incentive aimed at promoting the adoption of small-scale renewable energy systems, such as Solar panels. The scheme operates in Australia and is administered by the Clean Energy Regulator.

When a homeowner or small business installs a Solar panel system with a capacity of 100 kilowatts or less, they can claim STCs based on the expected electricity generation of the system over its lifetime. The number of STCs received is determined using a formula that takes into account factors such as the system’s location, size, and expected output.

Once the STCs are issued, they can be traded on the open market. The value of STCs can fluctuate based on supply and demand dynamics. The purpose of this trading system is to help reduce the upfront cost of installing Solar panel systems by allowing individuals or businesses to sell their STCs to larger energy retailers or other market participants who have an obligation to meet renewable energy targets.

By trading their STCs, homeowners and small businesses can receive a financial benefit that offsets a portion of the cost of their Solar panel system. This makes it more affordable for them to invest in renewable energy technology and encourages the uptake of Solar power.

It’s important to note that the STC scheme is subject to periodic reviews and changes by the government, so the specifics of how STCs are calculated and traded may vary over time.

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