The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that aims to encourage the installation of small-scale renewable energy systems, such as Solar panels, by providing financial incentives in the form of Small-scale Technology Certificates (STCs).
STCs are created for each megawatt-hour (MWh) of renewable energy expected to be generated by a system over its lifetime. The number of STCs generated is determined by factors such as the system’s size, location, and the amount of renewable energy it is expected to produce. The more energy a system is expected to generate, the more STCs it will create.
Once a system owner has obtained the STCs for their system, they have the option to sell them to electricity retailers. Electricity retailers are required by law to purchase a certain number of STCs each year to meet their renewable energy obligations. By selling their STCs, system owners can receive a financial benefit and offset some of the costs associated with installing and maintaining their renewable energy system.
The value of STCs is not fixed and can fluctuate depending on market conditions and demand. The price per STC is determined through a market-based mechanism and can vary over time. System owners can either sell their STCs directly in the market or engage with a broker who can help them find the best price for their certificates.
Overall, STCs provide a financial incentive for individuals and small businesses to invest in small-scale renewable energy systems. By creating and selling these certificates, system owners can offset the costs of their installation and contribute to Australia’s renewable energy generation targets.
