STCs are created under the Small-scale Renewable Energy Scheme (SRES), which is a government incentive program designed to encourage the uptake of renewable energy systems, such as Solar panels.
The number of STCs a Solar system is eligible for is determined by the system’s capacity in kilowatts (kW), its location, and the amount of electricity it is expected to generate over a 15-year period. The higher the system’s capacity and the more sunlight it receives, the more STCs it will be eligible for.
Once the Solar system is installed, the owner can create STCs by submitting an application to the Clean Energy Regulator. The STCs are then issued based on the system’s capacity and location. The number of STCs that can be created for a particular system is determined by the Small-scale Technology Percentage (STP), which is set annually by the government.
After receiving the STCs, the owner can choose to either sell them on the open market or trade them to electricity retailers in exchange for a discount on their electricity bill. This financial incentive helps to offset the upfront cost of installing Solar panels and makes renewable energy more affordable for homeowners and businesses.
Overall, the STC program plays a crucial role in promoting the adoption of Solar power and reducing greenhouse gas emissions by making renewable energy more accessible and cost-effective for consumers.
