STC Scheme in 2023
The Small-scale Renewable Energy Scheme (SRES) in Australia is a government program that aims to encourage the use of renewable energy sources, such as solar panels, by providing financial incentives to households and businesses. The STC program is based on the creation and trade of Small-scale Technology Certificates (STCs).
STC Creation
STCs are created for eligible small-scale renewable energy systems, such as solar panels, and are based on the expected amount of renewable energy that the system will generate over a period of X years. STC quantities are created for a system is based on location, expected electricity generation, and the install date.
Once the STCs are created, they can be traded on the open market. Households and businesses that install eligible renewable energy systems, such as solar panels, can choose to either:
- Sell the STCs they have created, or
- Use them to offset the cost of the system.
STC incentives are usually provided to a customer as a point of sale discount. STCs are not eligible for GST.
The value of the STCs is determined by market forces, and can fluctuate depending on supply and demand. It’s important to note that the scheme will be closing on 2030, after which the STCs won’t be created anymore.
In summary, the Small-scale Technology Certificates (STCs) scheme in Australia is a government program that provides financial incentives to households and businesses that install eligible renewable energy systems, such as solar panels. The program is based on the creation and trade of STCs, which are generated based on expected amount of renewable energy the system will offset. These certificates can be used to offset the cost of the system or sold on the open market. The scheme will be closing on 2030. Use the STCs while you can!
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