The SRES is designed to encourage the installation of small-scale renewable energy systems, such as Solar panels, Solar water heaters, and heat pumps. Under this scheme, when a homeowner or business installs an eligible system, they are awarded a certain number of STCs based on the amount of renewable energy the system is expected to produce over its lifetime.
The number of STCs a system is eligible for is calculated using a formula that takes into account factors such as the system’s capacity, the amount of electricity it is expected to generate, and the zone in which it is located. The zones are divided based on the amount of Solar radiation received, with areas receiving more sunlight assigned a higher zone and therefore more STCs.
Once the STCs are awarded, they can be sold to electricity retailers, who are required by law to purchase a certain number of certificates each year. The price of STCs is determined by supply and demand in the market, and it can fluctuate over time. The value of the Rebate, therefore, depends on the number of STCs awarded and the market price at the time of sale.
The Rebate effectively reduces the upfront cost of installing a Solar system, as homeowners or businesses can factor in the value of the STCs when calculating the total cost. In some cases, the Rebate can cover a significant portion of the installation cost, making Solar energy more affordable and attractive.
It is important to note that the SRES is subject to periodic reviews and may be changed or phased out in the future. Therefore, it is advisable to check with the relevant government authorities or consult a reputable Solar installer to get the most up-to-date information on the available rebates and incentives.