The SRES is designed to incentivize the installation of small-scale renewable energy systems, such as Solar panels, Solar water heaters, and heat pumps. The amount of STCs received depends on factors such as the system’s capacity, location, and the amount of renewable energy it is expected to produce over its lifetime.
The number of STCs a Solar installation is eligible for is calculated using a formula that takes into account the system’s capacity and the zone in which it is installed. The higher the system’s capacity and the sunnier the location, the more STCs it will receive.
Once the Solar installation is accredited under the SRES, the installer can create and assign the STCs to themselves or to a registered agent who can sell them on the open market. The value of STCs can fluctuate based on supply and demand, and they can be traded like a commodity.
By selling the STCs, Solar system owners can recoup a portion of the upfront costs of their installation. The value of the STCs is typically deducted from the total cost of the system at the time of purchase, reducing the out-of-pocket expenses for the homeowner or business. In some cases, the installer may offer to handle the STCs and deduct their value directly from the installation cost.
The SRES has been instrumental in driving the growth of residential and commercial Solar installations in Australia. By providing a financial incentive for renewable energy generation, it has helped reduce greenhouse gas emissions and dependence on fossil fuels. The program has also contributed to the development of a thriving Solar industry in the country.