The Renewable Energy Target Scheme
The Renewable Energy Target (RET) Scheme incentivises renewable energy generation for homeowners, businesses, and larger enterprises like solar or wind farms.
The mission of this Australian government-run scheme is to reduce greenhouse gas emissions from the electricity sector, therefore minimising climate change and creating a cleaner, greener future for the planet.
In this guide, find out everything you should know about the Renewable Energy Target Scheme, including who is eligible and how you can sign up. Contact Volteam today to find out more about installing eligible renewable energy systems for your home or business.
Understanding the Renewable Energy Target Scheme
Both the Large and Small-Scale Renewable Energy Target Schemes are administered by the Clean Energy Regulator, who aim to create a market that incentivises the renewable generation of energy.
This market supports both households and larger businesses to become more conscious of energy efficiency, therefore facilitating the country’s transition to a less carbon-intensive, more sustainable energy system.
Here’s what each scheme entails:
Large-Scale Renewable Energy Target
The Large-Scale Renewable Energy Target (LRET) encourages investment in wind farms, solar farms, hydroelectric power stations, and other large renewable energy sources. Overall, the scheme aims to meet a target of an extra 33,000 gigawatt hours of renewable electricity generation per year, from 2020 to 2030.
Rather than producing electricity by burning fossil fuels, these renewable energy power stations generate clean power through the sun, wind, and moving water. This allows them to create large-scale generation certificates (LGCs), which can then be sold to either electricity retailers or companies who wish to voluntarily demonstrate their use of renewable sources.
These liable entities must purchase a particular percentage of electricity from renewable sources every year through LGCs. These should then be surrendered to the Clean Energy Regulator.
Small-Scale Renewable Energy Scheme
The Small-Scale Renewable Energy Scheme is designed to encourage homeowners, landlords, and businesses to reduce greenhouse gases by installing renewable energy systems.
After installing an eligible system, owners can create small-scale technology certificates (STCs), which they may sell on to liable entities such as electricity retailers. These must be surrendered to the Clean Energy Regulator every year to create more demand for STCs.
Alternatively, STCs can be purchased by the company that install the system, who will then offer a lower price or delayed payment for their services. You’ll earn one STC for every megawatt hour of renewable energy generated by the system.
Outside of these renewable energy targets, homeowners and small businesses may also be eligible for feed-in tariffs, depending on which state you live in.
Feed-in tariffs pay householders for any excess electricity generated that their renewable energy systems feed back into the main grid.
Eligibility for the Renewable Energy Target Scheme
For the Small-Scale Renewable Energy Target Scheme, there are 5 system types that can be eligible for STCs. However, these renewable energy systems must meet specific requirements, otherwise they may be classified as power stations and accredited under the LRET.
These requirements include system capacity (1) and annual electricity output (2) as follows:
- Solar Photovoltaic (PV): (1) No more than 100 kW (2) Less than 250 MWh
- Solar Water Heaters: (1) Up to 700 L
- Air Source Heat Pumps: (1) No more than 425 L
- Wind Turbines: (1) No more than 10 kW (2) Below 25 MWh
- Hydro Systems: (1) Less than 6.4 kW (2) No more than 25 MWh
As well as installing a new system, another way to meet renewable energy targets is by upgrading or replacing components of your current system. For instance, you may consider using an existing solar inverter to add more panels to your rooftop solar system and begin earning small-scale technology certificates.
Installing Rooftop Solar Panels
As a key way to meet renewable energy targets, Australia has the highest uptake of household solar power in the world – in fact, one in three homes now use it as their main energy source.
Not only does using solar power help to combat climate change, but it also promotes energy independence and provides an alternative solution to rising electricity prices for householders. Installing solar panels can also help you to save money through feed-in tariffs and STCs.
Follow these steps to ensure that your rooftop solar system is eligible for the Small Scale Renewable Energy Target scheme:
1. Determine Your Electricity Use
Before installing a rooftop solar system, you’ll first need to contact your energy provider to see how much electricity your home uses. This can help you determine which size system to select and also whether solar panels are the best option.
You’ll also need to decide whether to use the electricity generated yourself, store it in a battery, export it to the grid, or a mixture of all options.
2. Choose an Eligible Solar Rooftop System
Once you’ve determined your home’s usage needs, you’ll also need to consider location, including sun exposure, and your budget to select the right rooftop system.
If you’re unsure, call a Clean Energy Council-certified installer like Volteam Electric. We specialise in designing and installing a variety of solar power systems from leading brands such as Trina, JA, and Hyundai, providing a tailored approach to solar energy for every customer.
We can also make sure that your chosen system meets Australian standards and is therefore eligible for STCs, including having a capacity less than 100 kW and a total annual electricity output lower than 250 MWh.
3. Get Your System Installed
After ensuring that your system meets Australian standards and is eligible for STCs, it’s then time to install the solar panels. Ask to see the accreditation and licence detailers of the installer on the day, and once complete, ensure that you have all of the key operating details.
4. Create STCs
You can then begin selling small-scale technology certificates by creating a ‘Registered Person’ account in the REC Registry. Ensure that you have all of the required documents, or instead use a registered agent to conduct the process for you, including calculating the financial benefits you’re eligible for.
Harness the Power of Renewable Energy Technologies Today
At Volteam, our CEC-accredited team is on hand to power up your residential or commercial property with high-quality rooftop solar systems that can help you meet renewable energy targets. We take pride in our comprehensive locations coverage, servicing more suburbs than ever before. You can find us installing solar solutions in Forest Lake, Springfield Lakes, and Oxley, just to name a few.
We also provide comprehensive solar panel maintenance services to reduce the risk of unexpected breakdowns and keep your systems functioning optimally all year round.
Call our expert team today at 1300 865 832 for a solar panel consultation or request your free quote on the Volteam website.
FAQs
What is the Renewable Energy Target for Australia in 2030?
All states across Australia are working together to transform the country’s energy systems, with the aim of delivering cheap, clean, and reliable energy to reduce greenhouse gas emissions. By 2030, the Australian Government hopes to be putting 82% renewable energy into electricity grids, rather than burning fossil fuels to power our homes and businesses.
What is the Renewable Energy Target Scheme?
The Renewable Energy Target Scheme incentivises householders, small businesses, and larger enterprises like solar or wind farms to begin using renewable energy sources. The aim is to reduce emissions and help homes and businesses make the switch to rooftop solar systems, solar water heaters, air-source heat pumps, and wind turbines.
How Does the Renewable Energy Target Scheme Work?
The RET scheme works by creating energy generation certificates that can be sold by householders and businesses to liable entities, such as electricity retailers. One small or large-scale certificate can be earned for every megawatt hour of electricity that is generated by a renewable energy system.
Who Can Participate in the Renewable Energy Target Scheme?
While the Small-Scale Renewable Energy Target Scheme is designed for homeowners, landlords, and small businesses, wind farms, solar farms, hydroelectric power stations, and other big renewable energy sources can participate in the Large-Scale Scheme. However, all participants must ensure that they have an eligible system under overall capacity and annual electricity output.
