Renewable Energy Target
In August 2009, the Government implemented the Renewable Energy Target (RET) Scheme, which is designed to deliver on the Government’s commitment to ensure that 20 per cent of Australia’s electricity supply will come from renewable sources by 2020. In ten years time the amount of electricity coming from sources like solar, wind and geothermal will be around the same as all of Australia’s current household electricity use.
The RET expands on the previous Mandatory Renewable Energy Target (MRET), which began in 2001.
Enhancing the Renewable Energy Target
On 26 February 2010, the Government announced changes to be made to the RET scheme to provide greater certainty for households, large-scale renewable energy projects and installers of small-scale renewable energy systems like solar panels and solar water heaters.
From January 2011, the existing RET scheme will be separated into two parts – the Small‑scale Renewable Energy Scheme (SRES) and the Large‑scale Renewable Energy Target (LRET). Combined, the new LRET and SRES are expected to deliver more renewable energy than the existing 45,000 gigawatt-hour target in 2020.
The Department of Climate Change and Energy Efficiency commissioned McLennan Magasanik Associates to produce a report on the Impacts of Changes to the Design of the Expanded Renewable Energy Target (PDF 437 KB).
Legislation to implement the enhanced RET scheme was introduced into Parliament on 12 May 2010. The enhanced RET legislation was passed by the Commonwealth Parliament on Thursday 24 June 2010. A number of provisions commence the day after Royal Assent (29 June 2010), in particular a provision that limits the eligibility of air source heat pumps to 425 litres in capacity; and provisions to provide additional support for off-grid small generation units up to 20 kilowatts (kW) through the Solar Credits multiplier.
Under the new legislation, air source heat pumps with a volumetric capacity over 425 litres are excluded from creating Renewable Energy Certificates (RECs) if installed on or after 29 June 2010.
It is the Government’s intention that RECs will still be able to be created where a contract for the acquisition or installation of an above 425 litre air source heat pump has been entered into with the acquirer of the system (or their agent) prior to 24 June 2010. The installation will need to be completed prior to 1 January 2011 and appropriate evidence of the contract provided to the Regulator.
Also commencing on the day after Royal Assent are provisions to increase the capacity limit for which the Solar Credits multiplier applies in relation to eligible ‘off-grid’ small generation unit installations up to the first 20 kilowatts (kW) of a system capacity subject to an annual cap on the total number of certificates.
Further details on the new RET arrangements are available in the fact sheet (158 KB).
Support for households installing renewable energy systems
The SRES has been designed to assist households, small business and community groups with installation of eligible renewable energy systems. The SRES will work in conjunction with the existing Solar Credits mechanism, which boosts support for small generation units such as solar panels. Further details are available in the Support for small-scale renewable energy systems fact sheet (PDF KB).
Guide to installing solar panels
There are a few simple steps consumers should take before deciding to have a solar panel installed. These include: researching suitability of panels; understanding the installation contract; and getting a Clean Energy Council accredited installer to design a system to meet a consumer’s particular circumstances.
Helpful information is available in the quick guide to installing grid-connected solar PV panels (PDF 66 KB).
For a more detailed guide that covers issues related to solar PV installations, please see the Clean Energy Council website.
Other support for renewables
The government has a range of rebates available to householders wishing to make their homes greener.
There are also grants and funding for businesses and communities.