STC's Explained

WHAT ARE STC’s

Households and small businesses across Australia that install a small scale renewable energy system (solar, wind or hydro) or eligible hot water system may be able to receive a benefit under the Small-scale Renewable Energy Scheme (SRES) to help with the purchase cost.

Installing an eligible system allows the creation of Small-scale Technology Certificates (STCs) with a value that can be redeemed by selling or assigning them. The number of STCs created is based on:

  1. The amount of renewable electricity the system produces or the amount of electricity consumption it reduces
  2. The climate region where it’s installed

     Owners have 2 options for receiving benefit for their STCs:

    1.  Assigning them to an agent, usually the system installer, in exchange for a discount or delayed cash payment, or
    2. Selling the certificates themselves

       There are 2 options for selling the certificates:

      1. Through the open STCs market with pricing subject to market forces, or
      2. Through the STCs Clearing House with the price fixed at $40 per STC, excluding GST

      Who buys the STC’s

      Renewable Energy Target liable entities (usually electricity retailers) have a legal obligation​​n to buy and surrender to the Clean Energy Regulator on a quarterly basis.

      What is the overall benefit?

      The Large-scale Renewable Energy Target is designed to deliver the majority of the Renewable Energy Target (2020), while the Small-scale Renewable Energy Scheme supports the installation of small-scale renewables, such as household solar rooftop panels and solar hot water systems.

      In summary, these large energy suppliers subsidise your home solar system, which in turn will reduce your reliance on using their power, therefore reducing emissions.

      It is important to understand that if you assign your STC’s to Home Energy Storage, the price is subject to the current market value.