The SRES was introduced in 2011 as a part of the Australian government’s efforts to promote the use of renewable energy. It aims to reduce the upfront cost of installing Solar panels and increase the adoption of Solar power systems across the country.
Under the SRES, Solar panel installations with a capacity of 100 kilowatts (kW) or less are eligible to create STCs. The number of STCs that can be created is determined by the system’s capacity and the amount of electricity it is expected to generate over a certain period, known as the deeming period.
The deeming period for Solar panel installations is set at 15 years, meaning that each year, a certain number of STCs can be created based on the system’s estimated electricity generation for the next 15 years.
The value of STCs is not fixed and can vary depending on several factors. These factors include the supply and demand dynamics of the STC market, the overall demand for renewable energy systems, and the location of the installation.
The market price of STCs is determined through trading on the STC market. Solar panel system owners can choose to sell their STCs to agents or traders who participate in the market. The value of each STC is determined by the market dynamics and can fluctuate over time.
The value of STCs can also be affected by government policies and regulations. For instance, changes in the government’s renewable energy targets or adjustments to the SRES can impact the demand and value of STCs.
Overall, the SRES and the creation of STCs provide an incentive for individuals and businesses to install Solar panels and contribute to Australia’s renewable energy goals. By reducing the upfront costs and allowing for the trading of STCs, the program helps make Solar power more affordable and accessible to a wider range of consumers.