--- description: "What is Small-Scale Technology Certificate (STC): It represents 1 MWh of renewable electricity from small-scale systems." title: What is Small-scale Technology Certificate (STC)? - Energy Theory image: https://energytheory.com/wp-content/uploads/2023/07/JAN-23-What-is-Small-scale-Technology-Certificate-STC.jpg --- Close Menu - [About](https://energytheory.com/about-us/) - [EV](https://energytheory.com/category/electric-vehicles/) - [FAQs](https://energytheory.com/category/faqs/) - [Glossary](https://energytheory.com/category/glossary/) - [Green](https://energytheory.com/category/green/) - [Renewable](https://energytheory.com/category/renewable/) - [Sustainable](https://energytheory.com/category/sustainable/) - [Energy Economy](https://energytheory.com/category/energy-economy/) - [Energy Services](https://energytheory.com/category/energy-services/) - [Solar](https://energytheory.com/category/solar/) - [Sustainable](https://energytheory.com/category/sustainable/) - [News](https://energytheory.com/category/latest-news/) - Language [![Energy Theory](https://energytheory.com/wp-content/uploads/2022/11/2e3rtgthghnm.png)](https://energytheory.com/ "Energy Theory") ![en](https://cdn.gtranslate.net/flags/svg/en.svg) English ![es](https://cdn.gtranslate.net/flags/svg/es.svg) Spanish ![fr](https://cdn.gtranslate.net/flags/svg/fr.svg) French ![en](https://cdn.gtranslate.net/flags/svg/en.svg) English ![it](https://cdn.gtranslate.net/flags/svg/it.svg) Italian ![zh-CN](https://cdn.gtranslate.net/flags/svg/zh-CN.svg) Chinese (Simplified) ![nl](https://cdn.gtranslate.net/flags/svg/nl.svg) Dutch ![fi](https://cdn.gtranslate.net/flags/svg/fi.svg) Finnish ![de](https://cdn.gtranslate.net/flags/svg/de.svg) German ![hi](https://cdn.gtranslate.net/flags/svg/hi.svg) Hindi ![ja](https://cdn.gtranslate.net/flags/svg/ja.svg) Japanese ![pl](https://cdn.gtranslate.net/flags/svg/pl.svg) Polish ![pt](https://cdn.gtranslate.net/flags/svg/pt.svg) Portuguese ![ru](https://cdn.gtranslate.net/flags/svg/ru.svg) Russian [![Energy Theory](https://energytheory.com/wp-content/uploads/2022/11/2e3rtgthghnm.png)](https://energytheory.com/ "Energy Theory") ![en](https://cdn.gtranslate.net/flags/svg/en.svg) English ![es](https://cdn.gtranslate.net/flags/svg/es.svg) Spanish ![fr](https://cdn.gtranslate.net/flags/svg/fr.svg) French ![en](https://cdn.gtranslate.net/flags/svg/en.svg) English ![it](https://cdn.gtranslate.net/flags/svg/it.svg) Italian ![zh-CN](https://cdn.gtranslate.net/flags/svg/zh-CN.svg) Chinese (Simplified) ![nl](https://cdn.gtranslate.net/flags/svg/nl.svg) Dutch ![fi](https://cdn.gtranslate.net/flags/svg/fi.svg) Finnish ![de](https://cdn.gtranslate.net/flags/svg/de.svg) German ![hi](https://cdn.gtranslate.net/flags/svg/hi.svg) Hindi ![ja](https://cdn.gtranslate.net/flags/svg/ja.svg) Japanese ![pl](https://cdn.gtranslate.net/flags/svg/pl.svg) Polish ![pt](https://cdn.gtranslate.net/flags/svg/pt.svg) Portuguese ![ru](https://cdn.gtranslate.net/flags/svg/ru.svg) Russian [Glossary](https://energytheory.com/category/glossary/) # What is Small-scale Technology Certificate (STC)? By [Elliot Clark](https://energytheory.com/author/elliot_clark/)November 17, 20233 Mins Read ![JAN 23 What is Small-scale Technology Certificate (STC](https://energytheory.com/wp-content/uploads/2023/07/JAN-23-What-is-Small-scale-Technology-Certificate-STC-1024x683.jpg "What is Small-scale Technology Certificate (STC)?") A Small-scale Technology Certificate (STC) **represents one megawatt-hour of renewable electricity generated or displaced by qualifying small-scale renewable energy systems** like solar PV, wind, hydro, solar water heaters, and air source heat pumps. These certificates serve as a financial incentive, reducing the upfront installation expenses for small-scale renewable energy systems. The Small-scale Renewable Energy Scheme (SRES) allocates a specific number of STCs to eligible small-scale renewable energy systems as part of the incentive program. ### **Number of STCs Allowed** The number of certificates that a renewable energy system can obtain depends on its location, installation date, and the amount of electricity it generates or displaces over specific timeframes. - For small-scale solar panels, wind, or hydro systems, the **certificates are determined based on the electricity they produce** over one or five years or during a single maximum deeming period. - For solar water heaters or heat pumps, the **certificates are based on the electricity they effectively replace** over a single maximum deeming period. To find out how many certificates a system can receive, you can use the small generation unit [STC calculator for solar panels](https://www.rec-registry.gov.au/rec-registry/app/calculators/sgu-stc-calculator), wind, or hydro systems, and the [solar water heater STC calculator](https://www.rec-registry.gov.au/rec-registry/app/calculators/swh-stc-calculator) for solar water heaters and heat pumps. Small-scale Technology Certificate (STC), once created and verified, acts as a form of currency. These certificates can be sold to recover a portion of the system’s purchase and installation costs or transferred to others at a negotiated price. The Renewable Energy Target is supported by an online registry system called the REC Registry, which facilitates the creation, validation, auditing, and transfer of these certificates. **Also See:** [What is Renewable Energy Certificate (REC)?](https://energytheory.com/what-is-renewable-energy-certificate-rec/) ### **Calculating STC** The calculation incorporates multiple factors and adheres to a methodology established by the CER. **1. Deemed Energy Generation:** The CER uses a method called deemed energy generation to determine the amount of electricity generated or displaced by a system. This methodology considers various factors such as the system capacity, location, and type of technology. **2. Deeming Period:** The deeming period signifies the anticipated lifespan of the system. The CER sets distinct periods of consideration for various types of technology. For example, solar systems have a deeming period of 15 years. **3. Location-based Multiplier:** The CER provides a location-based multiplier to accurately **consider the differences in renewable energy generation potential across regions.** The multiplier represents the amount of [solar radiation](https://energytheory.com/what-is-solar-radiation/) or wind resources that can be harnessed at the installation site. Regions with higher solar or wind energy potential benefit more, resulting in more Small-scale Technology Certificates (STCs). **4. System Capacity:** The size of the small-scale renewable energy system plays a crucial role in determining the quantity of STCs. It usually represents the max power output or system capacity represented in kilowatts (kW). **Must Read:** [What is Report of Proposed Construction (ROPC)?](https://energytheory.com/what-is-report-of-proposed-construction-ropc/) Share. 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With a background in environmental science, he has a deep understanding of the issues facing our planet and is committed to educating others on how they can make a difference. #### Related Posts [![Post-consumer recycled (PCR) content](https://energytheory.com/wp-content/uploads/2024/04/Post-consumer-recycled-PCR-content.png "What is Post-Consumer Recycled (PCR) Content?")](https://energytheory.com/what-is-post-consumer-recycled-pcr-content/ "What is Post-Consumer Recycled (PCR) Content?") #### [What is Post-Consumer Recycled (PCR) Content?](https://energytheory.com/what-is-post-consumer-recycled-pcr-content/) April 9, 2024 [![Heating Seasonal Performance Factor (HSPF)](https://energytheory.com/wp-content/uploads/2024/02/Heating-Seasonal-Performance-Factor-HSPF.jpg "What is Heating Seasonal Performance Factor (HSPF)?")](https://energytheory.com/what-is-heating-seasonal-performance-factor-hspf/ "What is Heating Seasonal Performance Factor (HSPF)?") #### [What is Heating Seasonal Performance Factor (HSPF)?](https://energytheory.com/what-is-heating-seasonal-performance-factor-hspf/) February 3, 2024 [![What is Annual Fuel Utilization Efficiency (AFUE)](https://energytheory.com/wp-content/uploads/2024/02/What-is-Annual-Fuel-Utilization-Efficiency-AFUE.jpg "What is Annual Fuel Utilization Efficiency (AFUE)?")](https://energytheory.com/what-is-annual-fuel-utilization-efficiency-afue/ "What is Annual Fuel Utilization Efficiency (AFUE)?") #### [What is Annual Fuel Utilization Efficiency (AFUE)?](https://energytheory.com/what-is-annual-fuel-utilization-efficiency-afue/) February 2, 2024 Add A Comment Leave A Reply [Cancel Reply](https://energytheory.com/what-is-small-scale-technology-certificate-stc/#respond) Save my name, email, and website in this browser for the next time I comment. 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