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How to participate in the Renewable Energy Target

11 December 2015

Small-scale renewable energy systems and large-scale renewable energy power stations can be used to generate power for our community, homes and businesses from sustainable natural resources, such as the sun, wind and water.

Participation in the Renewable Energy Target includes:

  • large and small-scale voluntary participants who wish to invest in, or generate renewable energy, and lower their consumption of main grid electricity, and
  • participants who are required by law to surrender large-scale generation certificates and small-scale technology certificates to offset the generation of emissions intensive energy, and meet scheme compliance obligations.

The Small-scale Renewable Energy Scheme

The Small-scale Renewable Energy Scheme encourages investment in small-scale renewable energy, and creates a financial incentive for individuals and small businesses to install systems which produce electricity and deliver hot water.

To participate in the Small-scale Renewable Energy Scheme, individuals and small businesses must choose and install a renewable energy system which meets the scheme's eligibility criteria.

Owners of eligible systems may be eligible to receive either an upfront discount off the total cost of their system, or a quantity of small-scale technology certificates which can be created and sold following installation to recoup some of the cost.

Learn more about eligible small-scale systems and using a registered agent.

Registered agents

Under the Small-scale Renewable Energy Scheme, retailers, traders and installers of small-scale systems may also apply to the Clean Energy Regulator to become a registered agent.

Once registered with the Clean Energy Regulator, agents can assist owners in the purchase and installation of their system, and create and sell assigned small-scale technology certificates.

The Large-scale Renewable Energy Target

The Large-scale Renewable Energy Scheme creates a financial incentive for the establishment and growth of renewable energy power stations, such as wind and solar farms, or hydro-electric power stations.

To participate under the Large-scale Renewable Energy Scheme, renewable energy power stations must generate electricity from eligible natural resources such as the sun, wind, ocean waves and the tide, geothermal-aquifers, wood waste, agricultural waste, bagasse (sugar cane waste), black liquor (a by-product of the paper-making process), or landfill gas.

A full list of eligible renewable energy sources is in the Renewable Energy (Electricity) Act 2000—the legislation which underpins the Renewable Energy Target.

Renewable energy power stations that meet the eligibility criteria and become accredited under the scheme are entitled to create large-scale generation certificates—which can be sold and traded to off-set the cost of investment.

The Large-scale Renewable Energy Target also imposes a legal obligation on liable entities to buy and surrender certificates to the Clean Energy Regulator on an annual basis. The amount of certificates liable entities are required to surrender to meet their legal obligation is determined through the small-scale technology percentage and renewable power percentage.

Learn how to gain accreditation for a renewable energy power station under the Large-scale Renewable Energy Target, buying and selling large-scale generation certificates, and surrendering large-scale generation certificates to meet scheme compliance obligations.

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