These STCs can then be sold or traded to electricity retailers, who are required by law to purchase a certain number of STCs each year. The price of STCs varies depending on supply and demand in the market.
The SRES aims to incentivize the adoption of small-scale Solar systems by reducing the upfront cost for consumers. By receiving a discount through STCs, homeowners and businesses can offset the cost of installing Solar panels or Solar hot water systems.
The number of STCs received is calculated using a formula that takes into account factors such as the geographical location of the system, the amount of electricity it is expected to generate, and the number of years the system is expected to operate.
The SRES is designed to gradually reduce the number of STCs available each year, reflecting the decreasing cost of Solar systems over time. This reduction in STCs aims to align with the decreasing cost of Solar technology, ensuring that the scheme remains financially sustainable.
Overall, the SRES provides financial incentives for homeowners and businesses to invest in small-scale Solar systems, promoting the use of renewable energy and reducing greenhouse gas emissions.