Small-Scale Technology Certificates.

Small-Scale Technology Certificates (STCs) are created through the implementation of energy efficiency and energy saving systems such as:

• Solar PV
• Wind
• Hydro
• Solar Water Heaters
• Air Source Heat Pumps

1 STC = 1 megawatt hour of renewable electricity

either generated or displaced by the installed system.

They create a financial incentive to keep the cost of small-scale renewable energy systems affordable and within reach. Each STC is calculated based on the location of the system, the electricity generated or displaced, and the years left in the scheme until it ends in 2030. This means that all certificates are estimated for the next 9 years and paid upfront.

Liable entities have an STC liability, where they must surrender a certain amount of certificates quarterly. This mandatory surrender ensures a demand exists, creating a value for the certificates and making sure that the goal of small-scale solar affordability is achieved.

For most installations, the certificate rebate is subtracted as an upfront discount for the end client by the installer. The number of certificates generated is based on its geographical location, the installation date, and the amount of electricity in MWh generated or displaced by the system.

Although STCs differ from other Renewable Energy Certificates in their carbon offset value, they are often able to be claimed in conjunction with other certificates. For example:


250kW Commercial Solar Installation

99kW STC Upfront Discount + 151kW LGC (Large-Scale Generation Certificate)

State Based – New South Wales

Heat Pump Installation

STCs + ESC (Energy Saving Certificates)

State Based – Victoria

250kW Commercial Solar Installation

99kW STC Upfront Discount 151kW VEEC (Victorian Energy Efficiency Certificates)

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