To encourage the use of renewable energy, the Australian Government provides incentives called small-scale technology certificates (STCs). Individuals or businesses can earn STCs when they install eligible small-scale renewable energy systems.
About STCs
STCs are used as a way to meet renewable energy targets and reduce carbon emissions. They make renewable energy systems more accessible and attractive.
When you install an eligible renewable energy system, you earn a certain number of STCs.
An STC is equal to 1 megawatt hour (MWh) of renewable electricity generated or displaced by eligible systems. These include:
- solar PV
- wind and hydro
- solar water heaters
- air source heat pumps.
The number of certificates depends on the:
- geographical location
- installation date
- amount of electricity generated or displaced in MWh
- creation over one or 5 years, or a single maximum deeming period.
Create and trade STCs
If you install an eligible small-scale renewable energy system, you're entitled to create STCs.
You can create STCs yourself or assign the right to create STCs to a registered agent. If you assign the right to a registered agent, you might be able to receive an upfront discount on the cost of your system.
If you decide to create and trade STCs yourself, you can sell them through the STC Clearing House or the open market.
The small-scale technology percentage
The small-scale technology percentage (STP) is a target set by the Australian Government each year. It's designed to ensure a proportion of Australia's electricity comes from small-scale renewable energy systems.
The STP helps calculate the number of STCs liable entities must surrender each year to meet their renewable energy obligations. This creates a market for STCs so people who generate renewable energy can sell their certificates to liable entities.
Find out more about the small-scale technology percentage.