The number of STCs awarded to a Solar panel system is calculated based on the amount of electricity the system is expected to generate over its lifetime, as well as the location and installation date of the system. The more electricity a system is expected to generate, the more STCs it will be awarded.
Once the STCs are awarded, they can be sold on the open market to energy retailers or brokers. The price of STCs can fluctuate based on supply and demand, but the price is usually higher when the demand for renewable energy is high. Energy retailers and brokers are required by law to buy a certain number of STCs each year to meet their renewable energy targets, so there is a consistent demand for STCs in the market.
Selling STCs can help offset the upfront costs of installing a Solar panel system, making Solar energy more affordable for homeowners and businesses. It also incentivizes the installation of renewable energy systems, helping to reduce greenhouse gas emissions and combat climate change.
Overall, the STC system under the SRES provides a financial incentive for the installation of Solar panel systems, helping to accelerate the transition to renewable energy and reduce reliance on fossil fuels.
