STCs are designed to support small-scale renewable energy installations, including solar photovoltaic (PV) systems, with a capacity of up to 100kW. The number of STCs awarded is based on the system’s expected electricity generation over a set number of years.
Benefits:
Financial Incentive: STCs represent a tradable commodity, allowing solar system owners to sell them at market rates to aggregators or liable entities.
Cost Reduction: By selling STCs, businesses can offset a portion of the upfront installation costs, making solar power more financially viable.
Real-Life Example:
A shopping mall in NSW plans to install a 50kW solar PV system on its rooftop. Through the STC scheme, the mall receives 500 STCs, which can be sold to an energy retailer, reducing the upfront cost of the solar project by AUD $20,000.