We take compliance action to ensure the integrity of our schemes. Our compliance update keeps you informed of activities related to our compliance and enforcement priorities 2025–26. The update sets out our expectations of compliance by scheme participants and highlights the areas of focus for compliance action.

Australian Carbon Credit Unit (ACCU) Scheme

Reporting obligations and voluntary revocations 

In previous compliance updates, we flagged that over the coming months we would be reviewing and verifying the status of ACCU Scheme projects that have missed or are near their reporting deadline. When project proponents cannot supply us with a credible plan to bring their project back into compliance, we will commence the process to revoke the project.

There may be a range of reasons why a project is no longer proceeding – this may be because regulatory approvals or consents could not be obtained, or the proponent has chosen not to proceed with the project. In the July to September period, 26 projects were voluntarily revoked by their proponents, and we currently have a further 25 applications for voluntarily project revocation. To date, no ACCUs have been issued to these projects. If ACCUs had been issued, a project would be subject to relinquishment requirements.

We expect project proponents to proactively engage with us when their project is considered unlikely to proceed. Project revocations are an expected outcome for a minor proportion of ACCU Scheme projects, allowing for projects that are unlikely to deliver carbon abatement to be removed from the scheme.

Project notifications must be timely

Project proponents must promptly notify us of any important events impacting on their project, including disturbance events such as bushfires, floods or other natural disasters. Project proponents must have robust systems in place to detect and report these changes, and failure to notify may result in enforcement action. Project proponents who fail to meet their notification requirements may be subject to relinquishment notices and/or civil penalty proceedings.

We have released a new notify the regulator form in Online Services to help you to submit notifications to us. 

National Greenhouse and Energy Reporting (NGER) Scheme and Safeguard Mechanism

2024–25 NGER reporting

NGER emissions and energy reports for 2024–25 must be submitted by 11:59 pm (AEDT) on Friday 31 October 2025. Reports must be submitted through the new Emissions and Energy Reporting System (EERS), accessed through Online Services. We expect all NGER reporters to submit accurate reports on time. There are no extensions available to the statutory reporting deadline and there are penalties, including infringement notices, for non-compliance. Read our published list of late reporters.

To support reporters to submit on-time, accurate and complete NGER reports, we have established a reporter support page on our website with a range of resources. These include updated reporting guidance, calculators and training videos.

Safeguard facilities and excess emissions

Following the required NGER reporting, the next compliance deadline under the reformed Safeguard Mechanism is 31 March 2026.

Safeguard entities with facilities that exceed their baseline must manage their excess emissions, including through the surrender of ACCUs and Safeguard Mechanism credit units (SMCs) before the compliance deadline. 

Those entities that do not meet their obligations should expect the commencement of civil proceedings. We have discretion as to whether to accept an enforceable undertaking when offered. An enforceable undertaking will only be accepted in exceptional circumstances.

Enforceable undertaking with Fitzroy (CQ) Pty Ltd

Fitzroy (CQ) Pty Ltd has met its second obligation arising under the enforceable undertaking [PDF 1,419 KB] entered into with the Clean Energy Regulator in April 2025 in relation to the Safeguard Mechanism.

Fitzroy has so far surrendered 347,900 prescribed carbon units in line with the enforceable undertaking, with a further 235,179 due to be surrendered by 15 December 2025.

Renewable Energy Target (RET)

Clean Energy Regulator permanently suspends registered person

On 18 August 2025, we permanently suspended the registration of Hello Solar Pty Ltd under section 30A of the Renewable Energy (Electricity) Act 2000 (REE Act). This action was taken as we were no longer satisfied that Hello Solar was a fit and proper person for the purposes of the REE Act. This decision was effective immediately and Hello Solar can no longer create renewable energy certificates.

The decision follows an investigation into the conduct of Hello Solar, a company with affiliations to Emerging Energy Solutions Group Pty Ltd, NetZero Environmental Group Pty Ltd and Greenbot Pty Ltd (all of which have had their registrations permanently suspended under the REE Act). Hello Solar was found to have provided misleading responses when we asked them to provide information. We actively monitor entities related to, or involving, individuals related to parties that have been found not to be fit and proper, particularly where they attempt to participate in the schemes we administer.

Commencement of inspections under the Cheaper Home Batteries Program

We have commenced inspecting solar battery systems, which are now included alongside solar PV inspections as part of our routine inspection program under the RET. Inspection results are shared with state and territory electrical and safety regulators, as well as the Small-scale Renewable Energy Scheme (SRES) accreditation body, Solar Accreditation Australia (SAA).

To date, we have inspected approximately 100 solar battery systems. No system has been found to be unsafe and half were found to be fully compliant. However, half had minor installation issues mostly involving non-compliant labelling. While these findings align with previous compliance data from state schemes, such non-compliance remains unacceptable.

We will continue working with state and territory regulators and SAA to improve installer capability through targeted information, training and enforcement action. Installers who repeatedly fail to meet compliance standards risk loss of accreditation.

Taking action against non-compliant installers

Our 2024–25 solar PV inspection program has identified a small number of installers with repeated non-compliant installations under the SRES. These installers have failed to meet key clauses under Australian Standards and industry guidance, across multiple installations.

Installers who receive a substandard or unsafe inspection report are required to return to site to rectify the non-compliance and ensure future installations meet all requirements.

Under the Renewable Energy (Electricity) Regulations 2001, we will take compliance action, which may include suspending installers who repeatedly fail to meet Australian standards.

Clean Energy Regulator pursues the enforcement of Federal Court civil penalty orders

Mr Benjamin Airey has failed to comply with orders made by the Federal Court on 13 September 2023. He had deliberately contravened the REE Act by providing false information about an accredited installer that completed 38 solar PV installations. The orders required him to:

  • pay a civil penalty of $20,000
  • pay $15,000 towards the Clean Energy Regulator’s legal costs
  • take all reasonable steps to have an accredited person inspect and test a number of solar installations. 

In September 2024, we sought payment of the judgment debt from Mr Airey. After receiving no payment or response, we filed a Request for Enforcement with the Federal Court. 

In June 2025, Mr Airey attended an enforcement hearing. Shortly afterwards, he filed for bankruptcy. 

Compliance with court orders is mandatory. Participants who disregard their obligations will be held accountable. Choosing not to comply is not only unlawful – it is a poor business decision. 

Success of 2025 quarter 2 small-scale technology certificates (STCs) surrender

The statutory deadline for surrendering STCs for Q2 2025 was 28 July. The strong level of compliance from liable entities was continued in quarter 2 with 100% of certificates surrendered on time.

Auditors

Letters sent to auditors following auditor inspection outcomes

We inspect the performance of auditors to ensure that they comply with relevant legislation and audit standards and assess the appropriateness of auditors' professional judgement. Our inspections strengthen confidence in audit findings and help identify auditors who are performing poorly. 

We have written to 2 auditors about concerns we have with their performance. The issues raised include documentation and record keeping, and the evidence used to support the audit conclusion. One auditor accepted the improvement plan. The other chose to apply for deregistration and will no longer be a registered greenhouse and energy auditor. When issues like these are identified, we require auditors to implement an improvement plan and report back to us. We will assess their improvement efforts and decide on the appropriate compliance response.

Non-compliant auditors will face compliance action such as suspension or deregistration.