STCs are a form of government incentive under the Small-scale Renewable Energy Scheme (SRES) in Australia. When you install a Solar panel system, you are entitled to create and trade these certificates, which have a monetary value. The number of STCs you can create is determined by various factors:
1. System Capacity: The capacity of your Solar panel system, measured in kilowatts (kW), plays a significant role in determining the number of STCs you can create. Generally, larger systems generate more electricity and thus produce a higher number of certificates.
2. Location: The location of your Solar panel system affects the number of STCs you can create. Different regions in Australia receive varying amounts of sunlight, which impacts the system’s electricity generation potential. Sunnier regions typically generate more STCs.
3. Expected Electricity Generation: The amount of electricity your Solar panel system is expected to generate over its lifetime is another crucial factor. This estimation considers factors such as system capacity, tilt, orientation, shading, and local weather patterns. The more electricity your system is expected to generate, the more STCs you can create.
The number of STCs you can create determines the financial benefit you receive. These certificates can be traded or sold to entities obligated to surrender a certain number of certificates each year to meet their renewable energy targets. The value of STCs can vary based on market demand and supply.
It’s important to note that the SRES is a government scheme subject to changes and updates over time. Therefore, it is advisable to consult with accredited Solar installers or the Clean Energy Regulator for the most accurate and up-to-date information on STCs and their eligibility criteria.