The SRES is administered by the Clean Energy Regulator and is available to residential, small business, and community customers. It aims to support the installation of small-scale renewable energy systems and reduce greenhouse gas emissions.
Under the SRES, small-scale Solar panel systems are eligible for Small-scale Technology Certificates (STCs). These certificates represent the renewable energy that the system is expected to generate over a set period, usually 15 years. The number of STCs a system is eligible for depends on its size and location.
The value of an STC is not fixed and can vary depending on factors such as market demand and supply. The certificates can be sold by the system owner to electricity retailers or other buyers, who are required by law to purchase a certain number of certificates each year. The value of the certificates can be used as a point-of-sale discount, reducing the upfront cost of installing a small-scale renewable energy system.
The SRES also provides specific support for Solar hot water systems and small wind systems. Solar hot water systems are eligible for Small-scale Technology Certificates based on the amount of electricity the system is expected to displace. Small wind systems, on the other hand, are eligible for Large-scale Generation Certificates (LGCs), which represent the renewable energy generated by the system. The value of LGCs is determined by the market and can also be used as a discount on the system’s upfront cost.
It is important to note that the SRES is subject to periodic reviews, and the value of the certificates may change over time. The scheme is designed to gradually phase out as the market for small-scale renewable energy systems matures.
Overall, the Small-scale Renewable Energy Scheme plays a crucial role in encouraging the uptake of small-scale renewable energy systems in Australia by providing financial incentives to system owners.