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Small-scale Renewable Energy Scheme

09 November 2017
RET

The Small-scale Renewable Energy Scheme creates a financial incentive for individuals and small businesses to install eligible small-scale renewable energy systems such as solar panel systems, small-scale wind systems, small-scale hydro systems, solar water heaters and air source heat pumps. It does this through the creation of small-scale technology certificates which Renewable Energy Target liable entities have a legal obligatio​​n to buy and surrender to the Clean Energy Regulator on a quarterly basis.

Small-scale technology certificates are provided 'up front' for the systems' expected power generation over a 15 year period or, from 2017, from the installation year until 2030 when the scheme ends. This renewable electricity replaces electricity generated from non-renewable sources. Generally, householders who purchase these systems assign the right to create their certificates to an agent in return for a lower purchase price. The level of this benefit differs across the country depending on the level of solar energy.

Small-scale technology certificates can be created following the installation of an eligible system, and are calculated based on the amount of electricity a system produces or replaces (that is, electricity from non-renewable sources).

The number of small-scale technology certificates required to be submitted by electricity retailers is set each year by the small-scale technology percentage​.​

System eligibility

Under the Small-scale Renewable Energy Scheme, eligible small-scale renewable energy systems may be entitled to small-scale technology certificates, which can be sold to recoup a portion of the cost of purchasing and installing the system.

Small-scale renewable systems which may be eligible for certificates include:

  • solar photovoltaic (PV) panels
  • wind turbines
  • hydro systems
  • solar water heaters, and
  • air source heat pumps.

Learn more about systems eligible under the Small-scale Renewable Energy Scheme.​

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