The SRES is a government initiative designed to support the installation of small-scale renewable energy systems, including Solar power systems, across Australia. Under this scheme, households and businesses that install eligible Solar power systems are entitled to receive a certain number of STCs.
The number of STCs that can be claimed depends on factors such as the size of the system, the location, and the amount of electricity it is expected to generate over its lifetime. These factors are used to determine the system’s “deeming period,” which is the number of years during which STCs can be created.
Once the Solar power system is installed and operational, the system owner can create STCs for every megawatt-hour of electricity that the system generates. These STCs are essentially certificates that represent the environmental benefit of generating renewable energy.
System owners have the option to trade or sell these STCs to recoup some of the installation costs. They can either sell the STCs directly to electricity retailers or participate in the Small-scale Technology Certificate Clearing House, which allows them to sell their STCs at a fixed price.
The value of STCs is determined by market forces and can vary over time. However, the financial incentive provided by the SRES in the form of STCs can significantly reduce the upfront cost of installing a Solar power system, making it more affordable and attractive for households and businesses.
It is important to note that the SRES is subject to periodic reviews and changes by the government, and the number of STCs that can be claimed for a Solar power system may be reduced over time. Therefore, it is advisable for interested parties to stay updated on the latest regulations and incentives provided by the SRES.