Under the SRES, homeowners and businesses that install eligible solar systems can create STCs based on the amount of electricity the system is expected to generate over a 15-year period. These STCs can then be traded or sold to entities that have a legal obligation to surrender a certain number of STCs each year.

February 27, 2024by Luke0

STCs are created based on the amount of electricity that the Solar system is expected to generate, with one STC representing one megawatt-hour of electricity produced. The number of STCs that can be created for a specific Solar system is determined by the location of the system, its size, and its efficiency.

Once the STCs have been created, they can be sold on the open market to entities such as energy retailers, who are required to surrender a certain number of STCs each year under the Renewable Energy Target scheme. The price of STCs can fluctuate depending on market demand and supply, but homeowners and businesses can use the income from selling their STCs to offset the upfront costs of installing a Solar system.

Overall, the creation and trading of STCs provide an incentive for homeowners and businesses to invest in Solar energy, helping to reduce greenhouse gas emissions and transition towards a cleaner, more sustainable energy system.

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