Small scale renewable energy systems under the RET scheme
The Australian Government is supporting the deployment of renewable energy in Australia's electricity supply through the Renewable Energy Target (RET) scheme. The RET scheme guarantees a market for additional renewable energy generation, using a mechanism of tradeable renewable energy certificates (backed by a legislative obligation).
The Government’s RET scheme is designed to ensure that 20 per cent of Australia’s electricity comes from renewable sources by 2020. In ten years’ time the amount of electricity coming from sources like solar, wind and geothermal will be about equal to all of Australia’s current household electricity use.
The RET scheme includes incentives to support Australian households and businesses installing small scale solar, wind and micro hydro generating systems. ‘Solar Credits’ are available to households, businesses and community groups that install eligible small generation units by multiplying the number of certificates that eligible systems can create.
Since 1 January 2011, the RET has operated as two separate parts—the Large scale Renewable Energy Target (LRET) and the Small scale Renewable Energy Scheme (SRES). For small scale renewable energy systems installed from 1 January 2011 under the SRES, the certificates created will be referred to as small scale technology certificates or ‘STCs’. Certificates from large scale renewable power generation will be referred to as large scale generation certificates or ‘LGCs’.
Information on RET support for small scale renewable energy technologies is provided in the Support for small scale renewable energy systems fact sheet.
The RET scheme’s rules allow owners of small-scale solar photovoltaic (PV) systems, small wind turbines and micro-hydro systems to create at the time of installation certificates equivalent to the output of up to 15 years operation depending on the system type. This provides an upfront capital subsidy to householders, businesses and community groups, who may sell their certificates on the market.
While system owners can create certificates themselves, in practice owners generally transfer this right to their system provider in return for a discount on the system price or a cash payment.
Solar Credits
Solar Credits provide additional support to households, businesses and community groups that install small renewable energy generation units, such as rooftop solar panels, and small scale wind and hydro electricity systems.
Further information on Solar Credits is available in: