The number of STCs a system can receive is determined by factors such as the size of the system, its location, and the amount of electricity it is expected to generate over its lifetime. The SRES creates a market for these certificates, with the price varying depending on supply and demand.
To claim the subsidy, homeowners and small businesses must engage an accredited installer who will create the STCs on their behalf. The installer will then assign the certificates to a registered agent, who can sell them on the open market. The subsidy is applied as an upfront discount on the cost of the system, reducing the out-of-pocket expense for the homeowner or small business.
The SRES is designed to gradually decrease over time, with the number of certificates available decreasing each year. This is intended to reflect the decreasing cost of Solar panel systems and encourage their adoption without over-incentivizing the market. As the subsidy reduces, the price of STCs may also decrease.
It is important for homeowners and small businesses to ensure that the Solar panel system they install is eligible for the SRES and that they engage an accredited installer and registered agent to claim the subsidy. Failure to do so may result in losing out on the subsidy or facing penalties.
Overall, the Small-scale Renewable Energy Scheme provides a financial incentive for homeowners and small businesses in Australia to invest in Solar panel systems, helping to reduce greenhouse gas emissions and promote renewable energy generation.