Skip to main content Skip to main navigation Skip to search

Queensland and NSW floods 2022

Visit recovery.gov.au to see what help is available.

Close
Home

Top navigation main

  • News & media
  • Jobs
  • Ministers
  • Contact us
Main menu

AWE Main

  • Climate change
    Climate change Driving climate action, science and innovation so we are ready for the future.
    • Climate science and adaptation
    • Australia's climate change strategies
    • Emissions reduction
    • Emissions reporting
    • International commitments
    • Climate Active
    • Climate change publications and data
    • Australia’s National Greenhouse Accounts (Emissions Data)
    Stronger action on climate change

    Stronger action on climate change

    See how the Australian Government is committed to taking more ambitious action on climate change.

    Find out more

  • Energy
    Energy Building a secure and sustainable energy system for all Australians.
    • Energy policy in Australia
    • Energy and Climate Change Ministerial Council
    • Renewable energy
    • Energy publications
    • energy.gov.au
    • Energy Rating
    • Commercial Building Disclosure Program
    • Nationwide House Energy Rating Scheme (NatHERS)
    • Your Home
    Decorative image

    Nationwide House Energy Rating Scheme

    Guiding energy-efficient design and construction for a net-zero future

    Find out more about NatHERS

  • Environment
    Environment Improving stewardship and sustainable management of Australia’s environment.
    • Bushfire recovery
    • Climate change and the environment
    • Biodiversity
    • EPBC Act
    • Environmental information and data
    • International activities
    • Invasive species
    • Land
    • Marine
    • Partnerships
    • Protection
    • Report a breach of environment law
    • Threatened species & ecological communities
    • Waste and recycling
    • Wildlife trade
    Decorative image

    Read our Nature Positive Plan

    Our plan sets out the Australian Government’s commitment to environmental law reform

    Find out more

  • Water
    Water Improving the sustainable management of Australia’s water supply for industry, the environment and communities.
    • Coal, Coal seam gas (CSG) and water
    • Commonwealth Environmental Water Holder
    • Water policy and resources
    • Wetlands
    Water matters

    Water Matters

    Keep up with the latest news on the department's work in managing Australia's water resources.

    Read the latest edition here

  • Parks and heritage
    Parks and heritage Managing Australia’s iconic national parks, historic places and living landscapes.
    • Australian Marine Parks
    • Australian National Botanic Gardens
    • Booderee National Park
    • Kakadu National Park
    • Christmas Island National Park
    • National parks
    • Norfolk Island National Park
    • Heritage
    • Pulu Keeling National Park
    • The Great Barrier Reef
    • Uluṟu-Kata Tjuṯa National Park
    The reef

    Great Barrier Reef

    Australia is protecting and conserving this World Heritage Area.

    Find out more

  • Science and research
    Science and research Undertaking research and collecting data to support informed decisions and policies.
    • Climate change
    • Australia's biological resources
    • National Environmental Science Program (NESP)
    • Office of the Science Convenor
    • Australian Biological Resource Study (ABRS)
    • State of the Environment (SoE) reporting
    • Bird and bat banding
    • Supervising Scientist
    Our climate is changing

    Our climate is changing

    Find out more about how climate science helps Australians with the impacts of climate change.

    Find out more

  • About us
    About us We lead Australia’s response to climate change and sustainable energy use, and protect our environment, heritage and water.
    • Accountability and reporting
    • Assistance, grants and tenders
    • Fees and charges
    • News and media
    • Our commitment to you
    • People and jobs
    • What we do
    • Who we are
    Decorative image

    Juukan Gorge response

    Read the Australian Government's response to the destruction at Juukan Gorge and the recommendations

    Read the response

  • Online services
    Online services We do business with you using online platforms. This makes it easier for you to meet your legal requirements.
Department of Climate Change, Energy, Enviroment and Water

Breadcrumb

  1. Home
  2. Energy
  3. Renewable energy
  4. Renewable Energy Target scheme

Sidebar first - EN - Energy renewable

  • Energy
    • Renewable energy
      • Establishing offshore renewable energy infrastructure
      • Renewable Energy Target scheme
      • Growing Australia's hydrogen industry
        • Hydrogen Energy Supply Chain Pilot Project
      • Guarantee of Origin scheme
      • Independent Scientific Committee on Wind Turbines

Renewable Energy Target scheme

 

The Renewable Energy Target (RET) scheme encourages renewable electricity generation. It aims to reduce greenhouse gas emissions from the electricity sector.  

The RET comprises 2 schemes.

Large-scale Renewable Energy Target

The Large-scale Renewable Energy Target (LRET) incentivises investment in renewable energy power stations such as:

  • wind and solar farms
  • hydro-electric power stations.

These power stations can create large-scale generation certificates (LGCs) for the eligible renewable electricity they produce. They can sell LGCs to liable entities (mainly electricity retailers) or companies who want to demonstrate renewable energy use for voluntary purposes.

Liable entities must purchase a certain percentage of electricity from renewable sources each year. They comply with this by buying LGCs and surrendering them to the Clean Energy Regulator.

The LRET aims to deliver 33,000 gigawatt hours of extra renewable electricity each year. 

Small-scale Renewable Energy Scheme

The Small-scale Renewable Energy Scheme (SRES) incentivises households and businesses to install small-scale renewable energy systems. These include:

  • rooftop solar panels
  • solar water heaters
  • small-scale wind or hydro systems.

System owners can create small-scale technology certificates (STCs) when an eligible system is installed.

If you have a system installed, you can benefit from STCs by:

  • creating and selling STCs to liable entities (mainly electricity retailers)
  • assigning your right to create and sell STCs to the company who installs your system in exchange for a lowered price.

Liable entities must surrender STCs to the Regulator each year. This creates demand for STCs.

Reforms to the SRES

The Australian Government amended the Small-scale Renewable Energy Scheme (SRES) regulations in 2021. This was in response to the Regulator’s review into the rooftop solar photovoltaic (PV) sector.

The changes aim to better protect consumers and improve the integrity of the sector.

See how we consulted on the draft amendments on our Consultation hub.

Emissions-intensive trade-exposed activities under the RET

Activities that meet emissions-intensive and trade-exposed (EITE) criteria are eligible for exemption under the RET to reduce costs and support competitiveness.

Companies performing EITE activities may apply for an exemption certificate. They can give the certificate to liable entities to negotiate a discounted electricity rate. This gives liable entities an exemption from surrendering LGCs or STCs for electricity used in EITE activities.

The Renewable Energy (Electricity) Regulations 2001 outlines EITE activities.

The Emissions-Intensive Trade-Exposed Activity Boundaries instrument gives guidance on EITE activity boundaries.

Responsibility for the RET

Our department provides policy advice and implementation support for the RET scheme.

The Regulator oversees the operation of the RET scheme in line with the RET legislation:

  • Renewable Energy (Electricity) Act 2000
  • Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Act 2010
  • Renewable Energy (Electricity) (Large-scale Generation Shortfall Charge) Act 2000
  • Renewable Energy (Electricity) Regulations 2001

Read more

  • View the Regulator’s website.
  • Read about Australia's climate change strategies.

See also

  • The Emissions Reduction Fund incentivises Australian businesses to cut the amount of greenhouse gases they create.
  • See how we regulate offshore renewable energy.
Thanks for your feedback.
Thanks! Your feedback has been submitted.

We aren't able to respond to your individual comments or questions.
To contact us directly phone us or submit an online inquiry

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Please verify that you are not a robot.

Skip

Footer

  • Contact us
  • Accessibility
  • Disclaimer
  • Privacy
  • FOI
Last updated: 29 July 2022

© Department of Climate Change, Energy, the Environment and Water

We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past, present and emerging.