These STCs can then be sold to electricity retailers, who are required by law to purchase a certain number of them each year. The value of each STC is determined by market forces, but typically ranges from $30 to $40.
The SRES is designed to provide a financial incentive for the installation of Solar panel systems, reducing the upfront cost for homeowners and businesses. The value of the STCs can be used to offset the cost of purchasing and installing the Solar system, making it more affordable for consumers.
The SRES is administered by the Clean Energy Regulator (CER), which oversees the creation, sale, and transfer of STCs. Homeowners and businesses must ensure that their Solar system meets certain eligibility criteria in order to qualify for the scheme.
The SRES has been successful in promoting the uptake of Solar energy in Australia. Since its introduction in 2011, it has helped to install over 2.7 million Solar power systems across the country, generating more than 14,000 gigawatt-hours of clean electricity annually.
However, the SRES has faced criticism in recent years due to concerns over its cost and effectiveness. Some argue that the scheme has led to an oversupply of STCs, which has driven down their value and reduced the financial benefit for consumers. There have been calls for reforms to the scheme to address these issues and ensure its long-term sustainability.
Overall, the Small-scale Renewable Energy Scheme (SRES) and the Small-scale Technology Certificates (STCs) play a crucial role in promoting the adoption of Solar energy in Australia by providing financial incentives for homeowners and businesses to install Solar panel systems.