Small-Scale Generation Certificates
Small-scale technology certificates (STCs) are designed to incentivise the use of renewable energy across Australian households and businesses.
As part of the Renewable Energy Target (RET) Scheme, they aim to reduce carbon emissions and help meet the government target of having 82% renewable energy in our electricity grids by 2030.
Learn everything you need to know about STCs and renewable energy systems in this guide, including how to create and trade them.
What Are Small-Scale Technology Certificates?
Small-scale technology certificates, or STCs as they are often known, provide financial incentives for individuals and businesses who choose to pursue renewable energy projects within their properties.
This comes courtesy of the Australian Government’s Small-Scale Renewable Energy Scheme, which is administered by the Clean Energy Regulator.
For every renewable energy system installed, you will earn a particular number of STCs, depending on the installation date and geographical location. Each STC is equivalent to 1 megawatt-hour (MWh) of renewable electricity generated or displaced by eligible systems.
Which Renewable Energy Systems Are Eligible for STCs?
5 unique system types are considered to be eligible for small-scale generation certificates, but they must meet specific (1) system capacity and (2) annual electricity output requirements. This includes the following renewable energy sources:
- Solar Panel System: (1) No more than 100 kW (2) Less than 250 MWh
- Wind Turbines: (1) No more than 10 kW (2) Less than 25 MWh
- Hydro Systems: (1) No more than 6.4 kW (2) Less than 25 MWh
- Solar Water Heaters: (1) Up to 700 L
- Air Source Heat Pumps: (1) No more than 425 L
Home and business owners can also meet small-scale renewable energy targets by upgrading components of their current systems to make them more energy efficient. For example, one way to do this is by adding more solar panels to your rooftop solar system.
Creating, Buying, and Selling STCs
Once your eligible small-scale renewable energy system has been installed, you can then start to create STCs. This can be done in two ways: by generating STCs yourself, or by assigning the right to a registered agent.
Working with a registered agent is the most popular choice as the process can be quite complicated, plus you may be able to claim an upfront discount on the system’s purchase price.
If you choose to form STCs yourself, they should be created in the REC Registry within 12 months of the system installation date. Before being sold through either the STC Clearing House or the open market, you’ll need to:
- Check that the system is eligible
- Ensure you have all the required documents and evidence for your systems
- Select your deeming period
- Calculate your certificate entitlements using the small-generation unit STC calculator
STCs can be sold to liable entities such as electricity retailers, or purchased by the company that installs your renewable energy system. They will then offer you a lower price or delayed payment in exchange for their services.
Liable entities must surrender a particular number of STCs each year to meet their renewable energy obligations. This is calculated using the small-scale technology percentage, a yearly target set by the Australian Government to ensure a proportion of the nation’s electricity comes from these renewable energy sources.
It also creates a market for those who generate STCs to sell them to liable entities.
Finding High-Quality Renewable Energy Systems
Looking to make your home’s energy systems more efficient and lower those rising energy bills? At Volteam, our expert team is on hand to help you choose the right renewable energy source as part of the Small-Scale Renewable Energy Scheme.
From solar panels to solar batteries, we have nearly two decades of experience in installing and maintaining renewable energy systems from a range of leading solar retailer brands, including Trina, JA, and Hyundai. Also offer solar solutions across Queensland, from Narangba to Redlands.
Give us a call today at 1300 865 832 or contact us online and we’ll get back to you ASAP with an affordable quote and more advice on creating your first small-scale technology certificate.
FAQs
What are RECs in Australia?
RECs, or Renewable Energy Certificates, help to track and assign ownership to renewable energy generation and use. Each certificate indicates that 1 megawatt-hour of electricity has been generated from renewable sources, such as solar, hydro, or wind by landowners, householders, businesses, or large-scale power stations.
What Are Small-Scale Technology Certificates Worth?
The price of an STC is dependent on trading within either the open market or through the STC Clearing House. This helps system owners, registered agents, and liable entities buy and sell STCs. However, pricing in the STC Clearing house is capped at $40 per certificate, which excludes Goods and Services Tax (GST).
Can I Claim Small-Scale Technology Certificates Myself?
Any householder or business that installs an eligible small-scale renewable energy system, such as solar panels or wind turbines, is entitled to create STCs. Although individuals can claim these themselves, assigning the right to a registered agent is often the best way to navigate this process. You may also receive an upfront discount on the cost of your system.
How Do You Buy and Sell Small-Scale Technology Certificates?
Once created with eligible renewable energy systems, STCs are bought and sold through either the open market or the STC Clearing House. While pricing in the open market changes daily based on supply and demand, the cost to buy one STC in the Clearing House is capped at $40 excluding GST.
