The number of STCs received depends on the size of the installed system and the geographical location, with more STCs awarded for larger systems in areas with higher solar radiation. These STCs can then be sold to electricity retailers, who are required by law to purchase a certain number of certificates each year.

February 7, 2024by Luke0


The Small-scale Renewable Energy Scheme (SRES) in Australia is designed to incentivize the installation of small-scale renewable energy systems, including Solar panel systems. Under this scheme, homeowners or businesses that install eligible systems receive Small-scale Technology Certificates (STCs) based on the size of the system and the location.

The number of STCs awarded is directly proportional to the size of the installed system. Larger systems generate more electricity and hence receive more STCs. This means that a 10kW Solar panel system will receive more STCs compared to a 5kW system.

Geographical location also plays a role in determining the number of STCs awarded. Areas with higher Solar radiation, such as regions with more sunlight, will receive more STCs compared to areas with lower Solar radiation. This is because Solar panels in regions with higher Solar radiation generate more electricity and contribute more to reducing greenhouse gas emissions.

Once homeowners or businesses receive STCs, they have the option to sell them to electricity retailers. Electricity retailers, according to the law, are obligated to purchase a certain number of certificates each year. This creates a market for STCs, where sellers can earn money by selling their certificates to retailers.

The price of STCs is determined by supply and demand dynamics in the market. Typically, the price of STCs is higher when demand is higher or when the supply of certificates is limited. This allows homeowners or businesses to earn additional income from the sale of STCs, which can help offset the cost of installing a Solar panel system.

In summary, the number of STCs received depends on the size of the installed system and the geographical location, with larger systems in areas with higher Solar radiation receiving more certificates. These certificates can then be sold to electricity retailers, who are legally required to purchase a certain number of certificates each year.

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