Renewable Energy
Renewable energy is energy derived from natural sources. Unlike energy from fossil fuels, renewable energy is sustainable as it is generated from sources with an inexhaustible supply, such as sunlight, wind, waves, tides and geothermal heat.
Generally, renewable energy is clean and non-polluting, with greenhouses gases and toxic waste not emitted when electricity is produced from most types of renewable energy.
For these reasons, many people are switching to renewable energy as an essential ingredient to lowering greenhouse emissions and improving the future of our planet.
Government support for renewable energy
The Australian Government supports the production and use of renewable energy through a number of programs that encourage homes and businesses to invest in renewable energy, providing financial incentives to reduce the cost of renewable energy projects such as large wind and solar farms, as well as small solar power and solar hot water systems.
Some State Governments also offer a variety of programs that encourage the uptake of renewable energy.
Small scale technology certificates
The sale of Small scale technology Certificates (STC's) is the practical way the federal government encourages the generation of electricity from renewable sources and reduce greenhouse gas emissions, as part of the solar credits program.
Renewable energy projects that meet certain conditions are eligible to receive STC's. These certificates can be sold for cash or transferred to electricity retailers for an upfront discount when installing a new system.
One STC is equivalent to one megawatt hour of electricity, with the value of the certificates fluctuating according to market demand.
What does this mean for me?
Small-scale Technology Certificates (STCs) are as good as cash and can make a big difference to reducing the overall costs of installing solar panels.
When installing solar panels, your installer creates and registers one Small Scale Technology Certificate for each megawatt of electricity generated by your solar panels.
You can either sell these certificates to an electricity retailer using the Government-regulated STC Clearing House, or trade these certificates for an upfront discount to reduce installation costs.
There are numerous conditions that new solar power systems must meet to be eligible for this scheme, and the certificate applications must be completed within 12 months of installation.
