Under the Renewable Energy Target (RET), liable entities are required to
The liable entities’ reduced acquisitions are used to calculate the required surrender amount of large-scale generation certificates (LGCs) and small-scale technology certificates (STCs).
If a liable entity does not surrender the required number of certificates it may incur
The Clean Energy Regulator (the agency) recommends that liable entities plan ahead to calculate their certificate liability and obtain certificates at least 2 weeks prior to a surrender deadline.
Large-scale Renewable Energy Target, liable entities must surrender LGCs annually through the REC Registry. This is completed at the same time they lodge their energy acquisition statement.
LGC liability is automatically calculated in the energy acquisition statement on the REC Registry. A liable entity can manually calculate their LGC liability by multiplying their reduced acquisitions by the
renewable power percentage, then including any carried forward surplus or carried forward shortfall from the previous year.
Download a hi-res JPG version of the above LGC required surrender amount per year formula and example
Liable entities cannot sell or transfer surplus certificates to another liable entity.
LGC shortfall is created when a liable entity does not surrender enough LGCs to acquit its total LGC liability. If the shortfall is less than 10% of the LGC liability, the shortfall is carried forward to the following assessment year.
See section 36 of the
Renewable Energy (Electricity) Act 2000 for further information regarding large-scale certificate liability.
Small-scale Renewable Energy Scheme, liable entities must surrender an amount of STCs each quarter.
An estimate is used to calculate the required surrender amount for the first 3 quarters of the assessment year. In most cases, the estimate is based on the previous year’s reduced acquisitions lodged in the energy acquisition statement.
In the fourth quarter, the reduced acquisitions for the current assessment year are used to finalise STC liability for the year.
A STC carried forward surplus can be created when a liable entity surrenders more STCs than the calculated STC liability for a quarter. The carried forward surplus will then acquit a portion of the STC liability in the following quarter.
Entities cannot sell or transfer surplus STCs to another entity.
Liable entities cannot carry forward a STC shortfall. If a STC shortfall occurs, the liable entity will be required to pay the non-refundable
small-scale technology shortfall charge.
Liable entities calculate their STC liability for quarters one to 3 of the assessment year based on their estimated or actual reduced acquisitions, determined through one of the following methods:
Once the estimated or actual reduced acquisitions are determined, liable entities can then calculate their STC liability for quarters one to three by using the calculations outlined below.
Liable entities can view their required surrender amounts and surrender STCs via their REC Registry account.
Download a hi-res JPG version of the above STC required surrender amount for quarter 1 graphic
Download a hi-res JPG version of the above STC required surrender amounts for each of quarters 2 and 3 formula
STC liability for quarter 4 is calculated using a different method to the first 3 quarters of the assessment year. Liable entities surrender STCs for quarter 4 with the lodgement of their annual energy acquisition statement on the REC Registry.
Liable entities calculate the liability based on their current assessment year’s reduced acquisitions, multiplied by the STP, then subtract any STCs surrendered in the first 3 quarters.
Download a hi-res JPG version of the above STC required surrender amount for quarter 4 formula and example
See sections 38AA and 38AE of the
Renewable Energy (Electricity) Act 2000 for further information regarding small-scale technology certificate liability.
The number of LGCs a liable entity is required to surrender each year is calculated by multiplying the number of reduced acquisitions by the
renewable power percentage (RPP) set for that assessment year. The RPP is published on the agency website each year by the 31 March.
The Minister for Energy and Emissions Reduction (the Minister) determines the RPP for each assessment year. The agency recommends a percentage to the Minister, considering the following matters:
The Minister may also consider other matters in determining the RPP. If the RPP is not set by 31 March of the assessment year, a default percentage is applied.
The number of STCs a liable entity is required to surrender each quarter is partly calculated using the
small-scale technology percentage (STP). The STP is published on the agency’s website each year by the 31 March.
The Minister determines the STP for each assessment year. The agency recommends a percentage to the Minister, considering the following matters:
The Minister may also consider other matters in determining the STP. The STP must be set by 31 March of the assessment year, otherwise a default percentage is applied.
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