The SRES operates by creating a market for Small-scale Technology Certificates (STCs) which are generated when a small-scale renewable energy system is installed. The number of STCs generated depends on the size of the system and the amount of electricity it is expected to generate over a certain period of time.
These STCs can then be sold to liable entities such as electricity retailers, who are required by law to surrender a certain number of STCs each year. The price of STCs is determined by supply and demand, and it can vary over time.
The value of the Rebate depends on the number of STCs that can be created for a particular system. The more STCs a system is eligible for, the higher the Rebate will be. The Rebate is usually provided as a point of sale discount, reducing the upfront cost of installing the Solar panels.
To be eligible for the Rebate, the system must meet certain criteria, such as being installed by a qualified installer and using approved components. The installer must also be accredited by the Clean Energy Council.
It is important to note that the SRES is subject to a yearly deeming period, which means that the value of STCs decreases over time. This is done to gradually phase out the scheme as the cost of installing Solar panels decreases.
In addition to the federal government Rebate, some state governments and territories in Australia also offer their own Solar rebates and incentives. These can vary depending on the location and may have additional eligibility requirements.
Overall, the SRES provides financial incentives for individuals and businesses to invest in small-scale renewable energy systems, making Solar panels more affordable and encouraging the transition to clean energy in Australia.