The number of STCs that can be created for a Solar panel installation depends on its location, size, and the amount of electricity it is expected to generate. The more electricity the Solar panels are expected to produce, the more STCs can be created and sold.
The price of STCs is determined by supply and demand in the market. The government sets a maximum price for STCs, known as the Small-scale Technology Percentage (STP). This price decreases each year until the scheme ends in 2030. Electricity retailers are required to surrender a certain number of STCs each year, based on their share of the national electricity market. If retailers do not have enough STCs to meet their obligation, they must purchase them from homeowners and businesses.
To participate in the SRES, homeowners and businesses must ensure that their Solar panel installation meets certain eligibility criteria, including using approved Solar panels and inverters, and being installed by a Clean Energy Council accredited installer.
The SRES has been successful in promoting the uptake of small-scale Solar panel installations in Australia. It has helped reduce greenhouse gas emissions, increase renewable energy generation, and lower electricity bills for households and businesses. However, there have been some concerns about the cost of the scheme, as the cost of purchasing STCs is ultimately passed on to electricity consumers.