STCs, or Small-scale Technology Certificates, are a form of financial incentive provided under the Small-scale Renewable Energy Scheme (SRES) in Australia. The SRES aims to encourage the installation of renewable energy systems, such as Solar panels, by providing homeowners and businesses with a financial benefit.
The number of STCs that can be received is determined by two factors: the size of the Solar system and the location of the installation. The size of the system is measured in kilowatts (kW) and is referred to as the “system capacity.” The location of the installation is determined by the postcode of the property.
The Clean Energy Regulator, which administers the SRES, has created a formula to calculate the number of STCs that can be claimed based on system capacity and location. This formula takes into account the expected electricity generation of the system over a 15-year period.
The number of STCs received is also influenced by the market value of these certificates. The market value can fluctuate based on supply and demand dynamics in the market. Typically, the number of STCs received decreases each year as the scheme aims to reduce the financial support required for renewable energy systems over time.
Once homeowners or businesses have received their STCs, they can then sell them to electricity retailers or other entities with a legal obligation to acquire these certificates. The revenue generated from selling STCs can help offset the upfront cost of installing a Solar system, making renewable energy more affordable for consumers.