What is Small Scale Renewable Energy Scheme (SRES)?
The Small-scale Renewable Energy Scheme creates a financial incentive for owners to install eligible small-scale installations such as solar water heaters, heat pumps, solar panel systems, small-scale wind systems, or small-scale hydro systems. It does this by legislating demand for Small-scale Technology Certificates (STCs). STCs are created for these installations according to the amount of electricity they produce or displace.
What is an STC?
Small-scale technology certificates, or STCs, are a tradeable commodity attached to eligible installations of renewable energy systems (including solar panels, solar water heaters and heat pumps) up to 100kW.
Under the Federal Government’s Small-scale Renewable Energy Scheme (SRES), when you install an eligible system, you may claim a set number of these STCs.
This number is based on the amount of electricity in megawatt hours (MWh):
- generated by your small-scale solar panel, wind or hydro system over the course of its lifetime of up to 15 years; or
- displaced by your solar water heater or heat pump over the course of its lifetime of up to 10 years,
where one STC equals one megawatt hour (MWh) of electricity generated or displaced.
The number of certificates you can claim may vary depending on your geographic location, what you’re installing, whether your installation is eligible for Solar Credits, and/or the size and capacity of the installed system. For example, a 1.5kW solar panel system in Melbourne might be eligible for a minimum 21 STCs, while a solar water heater in Hobart might be eligible for a minimum of 20 STCs.
Solar Credits is a mechanism which increases the number of STCs that can be created for eligible installations of small-scale solar panel (photovoltaic – PV), wind, and hydro systems.
You can calculate the number of STCs claimable by a system by using the calculators on the Clean Energy Regulator website:
- Solar Water Heater STC Calculator
- Small-scale Generation Unit (small-scale solar panel, wind, and hydro) STC Calculator
STCs are created in the online REC Registry for correctly installed eligible solar water heaters, heat pumps, and small-scale solar panels, wind, and hydro systems.
The spot price for each STC as of 15/02/2013 is $31.75.
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