The SRES operates by creating a market for Small-scale Technology Certificates (STCs), which are generated by eligible Solar panel installations. These certificates can then be sold to electricity retailers, who are required by law to purchase a certain number of certificates each year.
The value of the STCs depends on various factors such as the size of the system, the location, and the current market conditions. The more STCs a system is eligible for, the higher the Rebate it can receive.
To claim the Rebate, households and businesses need to register their Solar panel system with the Clean Energy Regulator and assign the STCs to an agent who will handle the sale of the certificates. The Rebate is typically provided as a point-of-sale discount, reducing the upfront cost of installing the Solar panels.
It is important to note that the Rebate amount decreases over time as the number of STCs created for Solar panel installations increases. This means that early adopters of Solar panels receive a higher Rebate compared to those who install them later.
In addition to the federal government’s SRES, some state governments and local councils also offer additional rebates or incentives for Solar panel installations. These programs may have different eligibility criteria and Rebate amounts, so it is advisable to check with the relevant authorities in your area.
Overall, the SRES and other Solar rebates aim to encourage the uptake of renewable energy systems by making them more affordable for households and small businesses in Australia.