STCs are a form of financial incentive provided by the Australian government to promote the adoption of small-scale renewable energy systems. These certificates can be generated for eligible installations of Solar PV systems, Solar water heaters, and heat pumps.
The number of STCs a homeowner or small business can claim is determined by factors such as the size of the system, its location, and the estimated electricity generation over its lifetime. The larger the system and the more electricity it is expected to generate, the higher the number of STCs that can be claimed.
Once the STCs are generated, they can be either sold to an STC agent or used to reduce the upfront cost of the renewable energy system. Selling the STCs to an agent involves transferring the ownership of the certificates in exchange for a financial payment. This option allows homeowners and small businesses to receive immediate financial benefit from the STCs.
Alternatively, the STCs can be used to reduce the upfront cost of the renewable energy system. In this case, the value of the STCs is deducted from the total cost of the system, reducing the amount the homeowner or small business needs to pay out of pocket.
The process of claiming STCs involves registering the installation with the Clean Energy Regulator and submitting the required documentation. It is important to ensure that the installation meets all eligibility criteria and that the necessary paperwork is completed accurately to claim the appropriate number of STCs.
Overall, STCs provide a financial incentive for homeowners and small businesses to invest in renewable energy systems, making them more affordable and encouraging the transition to cleaner and sustainable energy sources.