The Ultimate Guide to STC's (Small-Scale Technology Certificates)

Australia's Renewable Energy Target (RET) and Small-Scale Technology Certificates (STCs): A Comprehensive Guide

Delving into Small-Scale Technology Certificates (STCs)

An STC equates to one megawatt-hour of renewable electricity. This can be produced or replaced by eligible renewable energy systems, such as solar PVs, wind turbines, hydro systems, solar water heaters, and air source heat pumps.

Under the Small-scale Renewable Energy Scheme (SRES), eligible systems have a right to a certain number of STCs. The actual number depends on the system's location, its installation date, and the total electricity it can generate or replace in megawatt-hours (MWh). For ease of calculation, the government provides tools like the small generation unit STC calculator and solar water heater STC calculator.

Certificates, once validated, can be considered as currency. System owners can sell them to recover some of their installation costs or negotiate their transfer to other businesses or individuals.

The STC market is dynamic, with two primary segments:

  1. The open market, where prices fluctuate based on demand and supply.
  2. The STC clearing house, with a set price of $40 per STC (excluding GST).

Those engaging in the market should be aware that STCs are commodities, and their prices will vary. This fluctuation is influenced by factors like electricity prices, feed-in tariffs, system costs, technology evolution, and consumer behavior.

Electricity retailers are the primary STC buyers. They need them to fulfill their renewable energy obligations. The quantity they require depends on the total electricity they buy or sell and the prevalent small technology percentage.

enviroflo heat pump hot water system

Criteria for Small-Scale System Eligibility