The SRES (Small-scale Renewable Energy Scheme) is a program implemented by the Australian federal government. It aims to encourage the adoption of small-scale renewable energy systems, such as Solar panels, by providing financial incentives to homeowners and businesses.
One of the key components of the SRES is the creation of small-scale technology certificates (STCs). STCs represent the environmental benefits of generating renewable energy and are issued for each megawatt-hour of electricity that the system is expected to produce over a designated period, called the deeming period.
The value of STCs is determined by various factors, including the size of the Solar system and the location of the installation. Areas with higher levels of Solar radiation typically receive more STCs. Additionally, the market demand for STCs can also influence their value.
Once homeowners or businesses install a Solar system, they can create STCs based on the system’s expected electricity generation. These STCs can then be sold to electricity retailers, who are required by law to purchase a certain number of STCs each year. The revenue generated from selling STCs can help offset the upfront cost of installing the Solar system.
The number of STCs that can be created for a Solar system is calculated using a formula that considers factors such as the system’s capacity, location, and installation date. The formula is designed to gradually reduce the number of STCs eligible for creation over time, reflecting the decreasing cost of Solar technology.
It’s important to note that the SRES is a government program specific to Australia, and incentives and regulations for renewable energy systems may differ in other countries.