How it works at a glance
The Renewable Energy Target is an Australian Government scheme to
increase the amount of electricity generated from sustainable, renewable sources and reduce emissions of greenhouse gases.
The
Small-scale Renewable Energy Scheme creates incentives for households and businesses to install small-scale systems.
The
Large-scale Renewable Energy Target is for an additional 33 000 gigawatt hours to be generated from renewable sources in 2020.
It works by creating a
market for renewable energy certificates, which drives investment in the renewable energy sector.
On the
supply side of the market, participants create certificates for each megawatt hour of renewable source electricity generated or displaced (no longer required from the grid).
On the
demand side, electricity retailers source these certificates to meet their renewable energy obligations.
