The Small-scale Renewable Energy Scheme (SRES) is a key component of the Australian government’s efforts to promote renewable energy adoption. It aims to encourage the installation of small-scale renewable energy systems, including Solar power systems, by providing financial incentives in the form of Small-scale Technology Certificates (STCs).
Under the SRES, eligible Solar power systems are granted a specific number of STCs based on the amount of electricity they are expected to generate over a 15-year period. This estimation is based on factors such as the system size, location, and the amount of sunlight it is likely to receive. Each megawatt-hour of electricity generated is equivalent to one STC.
The STCs can be traded or sold to electricity retailers, who are obligated to surrender a certain number of certificates each year to meet their Renewable Energy Target (RET) obligations. The price of STCs can vary depending on market demand and supply. The value of the STCs is typically factored into the upfront cost of installing a Solar power system, reducing the overall cost for the system owner.
The SRES has proven to be an effective mechanism in driving the uptake of small-scale renewable energy systems, including Solar power, across Australia. It has helped make Solar power more affordable for households and businesses, encouraging greater adoption and reducing greenhouse gas emissions from electricity generation.