Additionally, the SRES sets a deeming period of 15 years for Solar panel systems. This means that the system is assumed to generate a certain amount of electricity each year for 15 years, and the number of STCs received is based on this deemed amount.
The calculation of STCs is based on the Small-scale Technology Percentage (STP), which is determined by the government each year. The STP represents the percentage of electricity that is expected to be generated by small-scale renewable energy systems, such as Solar panels, in a given year.
To calculate the number of STCs, the system size is multiplied by the STP and the deeming period. For example, if a 100 kW Solar panel system has an STP of 10% and a deeming period of 15 years, the calculation would be:
100 kW x 10% x 15 years = 150 STCs
The value of each STC is determined by market demand and can fluctuate. Once the STCs are received, they can be sold on the STC market to electricity retailers or other parties who have a legal obligation to surrender a certain number of STCs each year. This allows system owners to receive a financial benefit and recoup a portion of their upfront costs.
It is important to note that the SRES is subject to change, and the eligibility criteria, deeming period, and STP may be revised in the future.