Under the SRES, eligible solar PV systems are entitled to a certain number of Small-scale Technology Certificates (STCs) based on the system’s size, location, and the amount of electricity it is expected to generate over its lifetime. These STCs can be sold to electricity retailers or other buyers, who are required by law to purchase a certain number of STCs to meet their renewable energy obligations.

February 27, 2024by Luke0

The number of STCs that a Solar PV system is entitled to is calculated using a formula that takes into account the system’s capacity, its location (as determined by postcode), and the “deeming period” set by the Clean Energy Regulator. The deeming period is the number of years over which the system is expected to generate electricity, and it varies based on the system’s size and location.

Once the system is installed and connected to the grid, the system owner can create STCs by submitting an application to the Clean Energy Regulator. The number of STCs created is determined by the formula mentioned above, and the owner can then sell these STCs to buyers in the STC market.

The price of STCs can vary depending on market conditions, but the value of STCs is generally higher in states with higher electricity prices and stronger renewable energy targets. The revenue from selling STCs can help offset the upfront cost of installing a Solar PV system, making it more affordable for homeowners and businesses to invest in renewable energy.

Overall, the STC system under the SRES provides a financial incentive for the installation of Solar PV systems, helping to drive the uptake of renewable energy and reduce greenhouse gas emissions in Australia.

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