Centred around the Renewable Energy Target that enforces 20% of Australia’s Energy generation to come from clean energy by the year 2020, the Small-scale Renewable Energy Scheme (SRES) works in conjunction with the Large-scale Renewable Energy Target (LRET) to encourage investment in renewable forms of power.
Solar Photovoltaic (PV), Solar Water Heater (SWH) and Wind are all technologies eligible to receive tradable certificates where an investment has been made from a home or business.
Small Scale Technology Certificates (STCs) are assigned to all Solar and Wind systems under 100kW of generating capacity. The amount of certificates awarded to each system differs around the country, with 5 zones mapped out based on the differing amount of sunlight across Australia. So a system installed in Queensland will receive slightly more certificates than that of its counterpart in Victoria.
Once installations are registered with the Clean Energy Regulator tradable certificates that can be bought and sold on the market are created. Depending on volume, a price is negotiated between the buyer and seller for the transfer of the STCs.
Emerging Energy will purchase unregistered STCs once an installation is complete. This process (known as Unregistered trading) provides a reliable source of capital and assists organisations in managing their businesses better.
Frequently asked questions
What is the spot price?
Standard market forces of supply and demand dictate the spot price of certificates, with fluctuations usually occurring on a daily basis. Spot pricing is the highest price on any given day surrendering entities will purchase STCs for. Obtaining a price close to spot requires a pace of 5000 STCs but pricing negotiations will normally take place regardless of size.
What is the difference between registered and unregistered trading?
Every installation (and the abundance of paperwork that accompanies) is recorded by the Clean Energy Regulator (CER), analysed, checked and converted into traceable certificates. This process is known as registration. Unregistered trade takes place prior to any dealings with the CER, jobs are submitted to agents who, at an agreed price, deal with the approval process and timeframes.
What type of trading best suits me and my business?
Registered and Unregistered trading can have advantages and disadvantages alike. For small to mid-sized retailers and installers, using an aggregator for trading unregistered STCs allows for a reliable and constant source of cash flow into the business.
Registered trading ideally suits larger operations with a high number of installations each week or those who specialise in larger scale commercial systems. The registration timeframe wont usually impact business capital and having the minimum market parcel size to get close to spot pricing wont be an issue.
This will depend on your individual needs. It is best to give us a call to discuss on 1300 703 508. Alternatively, you can make an enquiry via our website or e-mail email@example.com.