Under the SRES, eligible solar PV systems are awarded a certain number of Small-scale Technology Certificates (STCs), depending on the system’s size, location, and the amount of electricity it is expected to generate over its lifetime. These STCs can then be sold to electricity retailers, who are obligated to purchase a certain number of certificates each year to meet their renewable energy targets.

The number of STCs awarded to a Solar PV system is determined by the Clean Energy Regulator, based on the system’s installation date, location, and capacity. The value of STCs fluctuates based on market demand and supply, and can be traded on the open market.

The purpose of the STC scheme is to provide a financial incentive for the installation of renewable energy systems, such as Solar PV, and to help reduce the upfront cost for consumers. By selling their STCs to electricity retailers, homeowners can offset the cost of their Solar PV system and make renewable energy more affordable and accessible to more households.

Overall, the STC scheme plays a crucial role in driving the adoption of renewable energy technologies like Solar PV, and helps Australia transition towards a cleaner, more sustainable energy future.