Small-scale Technology Certificates (STCs) are a form of financial incentive provided to individuals or businesses that install small-scale renewable energy systems, such as Solar panels or Solar water heaters. These certificates represent a certain amount of renewable energy that is deemed to be generated over a specific period. The number of STCs earned depends on factors such as the size of the system and its location. These certificates can be traded or sold to electricity retailers, who are then obliged to surrender a certain number of certificates to the government each year.
Feed-in tariffs, on the other hand, are a payment made by electricity retailers to customers who generate surplus electricity from their Solar panels and feed it back into the grid. The rate at which electricity is bought back from customers is generally higher than the retail price of electricity. This encourages individuals and businesses to generate renewable energy and reduces their electricity bills.
Both STCs and feed-in tariffs aim to promote the uptake of Solar energy and reduce reliance on fossil fuels. These incentives help to make Solar panel installations more affordable and financially attractive for consumers.