Small-scale Technology Certificates (STCs) are a form of government incentive program in Australia that encourages the uptake of renewable energy systems. It is a tradeable certificate that can be created when eligible renewable energy systems are installed, such as Solar panels or wind turbines. These certificates can then be sold to electricity retailers, who are obligated to purchase a certain number of certificates each year to meet their renewable energy targets.
The number of STCs that can be created for a particular renewable energy system depends on factors such as the size of the system, its location, and the amount of electricity it is expected to generate over its lifetime. The value of STCs fluctuates depending on supply and demand in the market, and it is typically higher when there is a greater demand for renewable energy.
STCs provide a financial incentive for individuals and businesses to invest in renewable energy systems by reducing the upfront cost of installation. The value of the certificates can be claimed at the point of sale, allowing the cost of the system to be offset by the value of the certificates. This helps to make renewable energy systems more affordable and accessible to a wider range of consumers.
Overall, STCs play a crucial role in promoting the transition to renewable energy in Australia by providing a financial incentive for the installation of small-scale renewable energy systems.