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Small-scale Renewable Energy Scheme

19 April 2018
RET

The Australian National Audit Office is seeking stakeholder comments in relation to the Administration of the Renewable Energy Target by the Clean Energy Regulator. See the Audit of the Renewable Energy Target news item for further information.

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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