Under the SRES, households and businesses that install eligible solar panel systems can create small-scale technology certificates (STCs). These certificates can be traded or sold to electricity retailers, who are obligated to purchase a certain number of certificates each year.

February 5, 2024by Luke0


The Small-scale Renewable Energy Scheme (SRES) is a government initiative in Australia that provides financial incentives for the installation of small-scale renewable energy systems, such as Solar panels. The scheme aims to encourage the uptake of renewable energy and reduce greenhouse gas emissions.

Under the SRES, households and businesses that install eligible Solar panel systems can create STCs based on the amount of renewable energy the system is expected to produce over its lifetime. The number of STCs generated depends on factors such as the capacity of the Solar system and the location where it is installed.

Once the Solar system is installed and operational, the owner can create STCs by registering the system with the Clean Energy Regulator. These STCs can then be traded or sold to electricity retailers or other entities that have a legal obligation to purchase a certain number of certificates each year.

Electricity retailers are required to surrender a certain number of STCs each year to demonstrate compliance with their renewable energy obligations. By purchasing STCs, retailers can meet their obligations and support the growth of renewable energy in Australia.

The price of STCs is determined by supply and demand dynamics in the market. The value of STCs can fluctuate over time, but generally, the market price reflects the financial incentive provided by the government under the SRES.

By creating a market for STCs, the SRES provides a financial incentive for households and businesses to invest in renewable energy systems. This helps to make Solar power more affordable and accessible, ultimately contributing to the transition towards a cleaner and more sustainable energy system.

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