For: Home owners; Renters; Landlords [House; Apartment]
Overview
Households across Australia that install a small scale renewable energy system or eligible hot water system may be able to receive a benefit under the Small-scale Renewable Energy Scheme (SRES) to help with the purchase cost.
Installing an eligible system allows the creation of Small-scale Technology Certificates (STCs), an electronic form of currency with a value that can be redeemed by selling or assigning them.
Key eligibility
Small-scale Technology Certificates (STCs) are created for eligible systems. The number of certificates created is based on the amount of renewable electricity the system produces or the amount of electricity consumption it reduces, and the climate region where it’s installed.
Renewable energy systems
Renewable energy systems are referred to as Small Generation Units (SGUs). There are three types of eligible systems:
- solar power (photovoltaic - PV) systems
- wind power (turbine) systems
- hydro (water) power systems.
Solar Credits (see below) provide additional support for the installation of small generation units (SGUs) by creating additional Small-scale Technology Certificates.
Hot water systems
Hot water systems which reduce electricity consumption may be eligible for Small-scale Technology Certificates. There are two types of eligible systems:
- solar hot water systems
- heat pump hot water systems.
Solar Credits do not apply to hot water systems.
Solar Credits
Solar Credits apply to Small Generation Units and create multiple Small-scale Technology Certificates for the eligible part of their capacity. This applies to the first 1.5 kilowatts (kW) for eligible mains connected systems. Off-grid systems may be eligible for Solar Credits for the first 20 kW if an annual capacity limit is not reached.
The multiplication factor applies at the time of installation and is:
- 4 × eligible capacity from 1 July 2011 to 30 June 2012
(only available under transitional arrangements for systems contracted for prior to 5 May 2011) - 3 × eligible capacity from 1 July 2011 to 30 June 2012
- 2 × eligible capacity from 1 July 2012 to 30 June 2013
From 1 July 2013 onwards Solar Credits will no longer apply.
Selling or assigning the STCs
Owners have two options for selling their Small-scale Technology Certificates (STCs):
- assigning them to an agent, usually the system installer, in exchange for a discount or delayed cash payment; or
- selling the certificates themselves, either:
- through the open STCs market - pricing subject to market forces; or
- through the STCs Clearing House - price fixed at $40 per STC, excluding GST.
Next steps
Make sure you understand the full program information at the Australian Government's Department of Climate Change and Energy Efficiency website.
Small-scale Technology Certificates (STCs) are administered by the Office of the Renewable Energy regulator (ORER). The Small Generation Unit (SGU) Owner's Guide provides information on STCs and your options for gaining financial benefit from them.
Small-scale Renewable Energy Scheme (SRES)
