The Small-scale Technology Certificate (STC) incentive is part of the Australian Government’s Small-scale Renewable Energy Scheme (SRES), designed to encourage households and businesses to install energy-efficient renewable technologies such as solar water heaters and air source heat pump hot water systems.
When you install an eligible heat pump hot water system, your system may generate Small-scale Technology Certificates (STCs). These certificates have a monetary value and can be sold or assigned to an installer or retailer in exchange for an upfront discount on the cost of the system installation.
Each STCs represents a calculated amount of renewable energy generated or electricity displaced by the system over its expected lifetime. The number of STCs created depends on several factors including the system efficiency, installation location, and climate zone.
To qualify for STCs, the heat pump or solar hot water system must be listed on the Clean Energy Regulator’s approved register of solar water heaters and heat pump water heaters, and the installation must follow the approved product specifications.
In most cases, homeowners assign their STCs to the installer or retailer at the time of installation, allowing the incentive to be applied as an instant rebate or discount on the purchase price of the new hot water system.