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The small-scale technology percentage

07 April 2016

The 2016 small-scale technology percentage is 9.68%.

This is equivalent to approximately 16.95 million small-scale technology certificates

The small-scale technology percentage is used to regulate demand for small-scale technology certificates each year.

Calculating the small-scale technology percentage 

The small-scale technology percentage is calculated based on the:

  • estimated value (in megawatt hours) of small-scale technology certificates that will be created for the year
  • estimated amount of electricity that will be acquired for the year
  • exemptions expected to be claimed for the year, and 
  • adjustments for overs and unders from the previous year for the above factors.

The full impact of increases in 2015 exemptions due to the move from partial to full exemption has been taken into account in the calculation of the 2016 RPP and STP.​

Setting the small-scale technology percenta​ge

The Clean Energy Regulator publishes the small-scale technology percentage by 31 March each year.

The Clean Energy Regulator engages qualified consultants to provide estimates of small-scale technology certificate creation each year. These estimates, underpinned by market analysis inform the setting of the small-scale technology percentage. 

If the small-scale technology percentage is not published by 31 March, a default formula will apply as stated under the Renewable Energy (Electricity) Act 2000. For more information about the default formula refer to section 40A (2) of the act

Applying the small-scale technology percentage

Liable entities apply the small-scale technology percentage to calculate the number of small-scale technology certificates they must surrender in a given year. If a liable entity does not surrender enough certificates to meet its liability, it may be subject to a small-scale technology shortfall charge.

Non-binding estimate of the small-scale technology percentage for future years

The Clean Energy Regulator may also publish a non-binding estimate forecasting the small-scale technology percentage for the next two years. These estimates indicate what the small-scale technology percentage could be in future years allowing liable entities time to budget and plan for their small-scale technology certificate acquisition strategies each year. The non-binding estimate for 2017 is 9.02 per cent and 8.31 per cent for 2018.

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