Renewable Energy Target (RET)
Small-scale Renewable Energy Scheme (SRES)
The Small-scale Renewable Energy Scheme creates a financial incentive for owners to install eligible small-scale installations such as solar water heaters, heat pumps, solar photo-voltaic (PV) systems, small-scale wind systems, or small-scale hydro systems. It does this by legislating demand for Small-scale Technology Certificates (STCs). STCs are created for these installations according to the amount of electricity they produce or displace. RET liable entities have a legal requirement to buy STCs and surrender them on an quarterly basis.
While it is possible for owners of renewable energy systems to create and sell the STCs themselves, in practice, installers of these systems usually offer a discount on the price of an installation, or a cash payment, in return for the right to create the STCs. Householders considering installing small-scale renewable energy systems are encouraged to shop around for the best deal.
Large-scale Renewable Energy Target (LRET)
The Large-scale Renewable Energy Target 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. It does this by legislating demand for Large-scale Generation Certificates (LGCs). These LGCs are created based on the amount of eligible renewable electricity produced by the power stations. LGCs can be sold or traded to liable entities, in addition to the power station’s sale of electricity to the grid. RET Liable entities have a legal obligation to buy LGCs and surrender them to the Clean Energy Regulator on an annual basis.
Want to learn more?
For more information visit: Clean Energy Regulator – Renewable Energy Target
Clean Energy Regulator
The Clean Energy Regulator is the Government body responsible for administering legislation that will reduce carbon emissions and increase the use of clean energy.
Want to learn more?
For more information visit: Clean Energy Regulator