The Small-scale Renewable Energy Scheme (SRES) is an Australian government initiative aimed at promoting the installation of small-scale renewable energy systems, such as Solar panel systems, in households and businesses.
Under the SRES, when a Solar panel system is installed and meets the eligibility criteria, it is assigned a certain number of Small-scale Technology Certificates (STCs) based on the expected amount of electricity it will generate over the course of its lifetime. The STCs act as a form of currency and represent a certain amount of renewable energy.
The system owner can then choose to sell these STCs to electricity retailers or other buyers in the market. The price of STCs is determined by supply and demand dynamics and fluctuates accordingly. By selling the STCs, the system owner can receive a financial benefit that helps offset the upfront cost of installing the Solar panel system.
The number of STCs a system can generate depends on factors such as the size of the system, its geographical location, and the amount of renewable energy it is expected to produce. The more STCs a system generates, the higher the potential financial benefit for the system owner.
The SRES aims to incentivize the uptake of small-scale renewable energy systems by reducing the upfront costs and providing a financial return for system owners. This encourages more households and businesses to invest in Solar panel systems, leading to increased renewable energy generation and a reduction in greenhouse gas emissions.