Glossary
Small-scale Technology Percentage (STP)
The Small-scale Technology Percentage (STP) is the annual percentage, set by the Clean Energy Regulator, that tells liable entities how many STCs they must surrender for each megawatt hour of electricity they acquire. It is the dial that converts scheme targets into certificate demand.
The Small-scale Technology Percentage, or STP, is the figure that turns the Small-scale Renewable Energy Scheme into a buying obligation. Each year the Clean Energy Regulator sets it, and every liable entity multiplies its electricity acquisitions by that percentage to find how many STCs it must surrender.
How the number is worked out
The regulator forecasts how many STCs the market will create from rooftop solar, batteries and heat pumps in the year, then divides that by the electricity liable entities are expected to acquire. More installations mean a higher STP. The 2026 figure has been reported at about 11.67%, so check the regulator’s page for the current value before you rely on it.
Worked example
A retailer acquires 1,000 MWh in a quarter. At 11.67%, its obligation is 1,000 x 0.1167 = 116.7, so about 117 STCs to surrender. Multiply that across every retailer in the country and you get the annual demand for STCs.
In practice
Installers rarely quote the STP to customers, but it explains price behaviour. When the percentage is set high relative to the certificates being created, demand is firm and the market sits near the clearing house ceiling. The STC spot price has been roughly $38 to $40 at the time of writing against a $40 ceiling. See STC spot price and the STC clearing house.
The STP is also why the scheme is self-balancing in theory: if the regulator under-forecasts creation, the next year’s percentage adjusts.
Common confusion
The STP is not a rebate percentage and has nothing to do with how many STCs your system creates. That comes from the deeming period and zone rating. The STP only affects how much the buyers must purchase.
It is also separate from the Renewable Power Percentage, which is the equivalent figure for large-scale certificates. See LRET.
For the bigger picture read how STC trading works and the certificate trading glossary. The full list of terms is in the glossary.
Related terms
Also in the glossary
Liable entity
A liable entity is a business, typically an electricity retailer or large electricity buyer, that is legally required to…
SRES (Small-scale Renewable Energy Scheme)
SRES stands for Small-scale Renewable Energy Scheme, the part of the federal Renewable Energy Target that creates STCs f…
STC spot price
The STC spot price is the price at which Small-scale Technology Certificates are currently trading in the market for imm…
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