About the STC incentive

In 2020, the Federal government incentive known as “STCs” or Small-scale Technology Certificates is covering about a quarter to a third of the cost of a Home and Energy solar installation for a home or small business. For a medium to large business, the STCs may cover significantly more than a third of the cost.

The Small-scale Renewable Energy Scheme creates a financial incentive for individuals and small businesses to install eligible small-scale renewable energy systems such as solar panel systems. It does this through the creation of small-scale technology certificates (STCs) which Renewable Energy Target liable entities have a legal obligation to buy and surrender to the Clean Energy Regulator on a quarterly basis.

Small-scale technology certificates are provided “up front” for the system’s expected power generation over a 15 year period or, from 2017, from the installation year until 2030 when the scheme ends. This renewable electricity replaces electricity generated from non-renewable sources.

Generally, householders who purchase these systems assign the right to create their certificates to an agent in return for a lower purchase price. The level of this benefit differs across the country depending on the level of solar energy.

Small-scale technology certificates can be created following the installation of an eligible system, and are calculated based on the amount of electricity a system produces or replaces (that is, electricity from non-renewable sources).

The Renewable Energy Target is supported by an online registry system, called the REC Registry, which facilitates the creation, validation, auditing and transfer of certificates. Once created and validated, these certificates act as a form of currency and can be sold to recoup a portion of the cost of purchasing and installing the system, or transferred to other individuals and businesses at a negotiated price.

Please visit the Clean Energy Regulator website www.cleanenergyregulator.gov.au for more information about how STCs work and how they are calculated or follow the links below: