This is correct. Small-scale Technology Certificates (STCs) are a form of financial incentive provided by the Australian government to promote the installation of small-scale renewable energy systems, such as Solar panels. The number of STCs issued for a particular system depends on the amount of renewable energy it is expected to generate over its lifetime.
The value of STCs can vary depending on the supply and demand in the market. If there is high demand for STCs, their value increases, and if there is low demand, their value decreases. This fluctuation is influenced by factors such as government policies, renewable energy targets, and market conditions.
Homeowners and businesses who install eligible Solar panel systems can create and sell their STCs to registered agents or traders in the market. The value of the STCs is typically deducted from the upfront cost of the Solar panel installation, providing a financial benefit and making Solar panels more affordable.
It’s important to note that the value of STCs is determined based on the zone in which the Solar panels are installed, the amount of electricity they are expected to generate, and the market price of STCs at the time of creation. Therefore, the exact value of STCs can vary for different installations and over time.