What is a STC?
Solar Panels convert the energy from the sun into electricity. Under the Small-scale Renewable Energy Scheme, eligible solar panel systems are entitled to a number of small-scale technology certificates (STCs). This is based on the estimated amount of electricity in megawatt hours (MWh) the system generates over the course of its lifetime.
In addition, your system may be eligible for Solar Credits which multiplies the number of STCs the system can receive. Small-scale technology certificates used to be called renewable energy certificates or RECs.
Your STCs can be assigned to a registered solar panel Agent (such as a retailer or installer) in exchange for a financial benefit, such as a discount off your invoice.
Small-scale Technology Certificates (STCs) are created by eligible installations of Solar Water Heaters (SWH), Air Source Heat Pump Water Heaters and Small Generation Units (SGU) (small-scale solar photovoltaic panels, wind and hydro systems). A STC is generally equivalent to:
- 1 MWh of renewable electricity deemed to be generated by Small Generation Units unless the Solar Credits REC multiplier applies; or
- 1 MWh of electricity deemed to be displaced by the installation of Solar Water Heaters or Air Source Heat Pump Water Heaters.
STCs can be:
– Assigned to a registered agent (usually a retailer/installer) in exchange for a financial benefit such as a delayed cash payment or upfront discount; or
– Created in the REC Registry and sold through the STC Clearing House for a fixed price of $40 (excl. GST).
STCs are surrendered:
– Quarterly to demonstrate liability compliance against the requirements of the SRES;
– Voluntarily for any reason throughout the year; or
– for non-compliance (such as under the relevant enforceable undertaking sections of the Act) throughout the year.
More information can be found with the below link: