1st January 2011, the new SRES scheme began.
Under this new scheme, PV and Solar Hot Water systems create STCs.
The STC replaced the REC but is created the same way.
Background to the Renewable energy target (RET)
The RET scheme began with the Commonwealth Government's Mandatory Renewable Energy Target (MRET), targeting the generation of 9,500 GWh of extra renewable electricity per year by 2010.
The MRET commenced on 1 April 2001 by means of the Renewable Energy (Electricity) Act 2000 (the Act).
What is the Renewable Energy Target (RET)?
The Renewable Energy Target (RET) required that 20 per cent of Australia’s electricity be produced from renewable energy sources by 2020. To achieve this, the Government has set annual targets for each year of the scheme, and required
Australian electricity retailers and large wholesale purchasers of electricity to demonstrate that they met the target. Compliance is demonstrated by surrendering renewable energy certificates (RECs), where one REC is equivalent to one additional megawatt-hour (MWh) of electricity generated from renewable energy sources (above a 1997 benchmark).
Australian electricity retailers and large wholesale purchasers of electricity are required to surrender their nominated REC amounts assessed by the Regulator
Quarter 1 - 35% 15th Feb - 28 Apr
Quarter 2 - 25% 29th Apr - 28th July
Quarter 3 - 25% 29th July - 28th Oct
Quarter 4 - 15% 29th Oct - 14th Feb
Thus the 3rd quarter has just closed.
Renewable Energy Certificates (RECs) were changed in name on 1st January 2011and are now called Small-scaled Technology Certificates
What is a Small-scaled Technology Certificate?
STC’s are created after a system, either grid connect or solar hot water is installed, by registering the allocated number with the ORER.
An STC is equivalent to one megawatt-hour (MWh) of electricity generated from renewable energy sources.
After the SHCP rebate scheme was closed in 2009 the government set up the Solar Credits Scheme based on the STC’s with a multipler of 5 x until June 2011. But because there was a huge number of grid connect systems being installed prior to June this year which then meant a huge surplus of STC’s were created, thus virtually flooding the market causing the prices to drop to below $18 per STC.
As a result, it was reduced to 3 x, not 4 x, as promised by the Federal Government, to slow the rate of STC creation.
Since then the number of STC’s coming on to the market has slowed and the open market price has crawled back to $28 (the price offered by the traders.)
Rate of change in STC prices since June 2010
