Under the SRES, eligible solar installations can receive Small-scale Technology Certificates (STCs), which can be sold or traded to recoup a portion of the upfront costs of the solar system. The number of STCs received depends on the size and location of the solar system, as well as the amount of electricity it is expected to generate over its lifetime.

STCs are created through the Renewable Energy Target (RET) scheme, which aims to incentivize the installation of renewable energy systems, such as Solar panels. The number of STCs that can be created for a Solar system is determined by the Clean Energy Regulator, based on factors such as the system’s capacity, location, and the deeming period (which is typically 15 years for residential installations).

Once the Solar system is installed, the owner can assign the STCs to a registered agent, who will then sell them in the open market. The price of STCs can fluctuate depending on supply and demand, but they generally provide a significant financial benefit to the system owner. This helps reduce the payback period of the Solar system and makes renewable energy more affordable for homeowners and businesses.

Overall, the STC scheme provides a valuable incentive for Australians to invest in Solar energy and reduce their carbon footprint. It helps make renewable energy more accessible and financially viable, contributing to the country’s transition towards a cleaner and more sustainable energy future.