What is the Small-scale Renewable Energy Scheme?
The Small-scale Renewable Energy Scheme is an Australian Government initiative that encourages investment in small-scale renewable energy. It provides incentives to households and businesses to install small-scale renewable energy systems like rooftop solar, solar water heaters and air sourced heat pumps.
Information for householders
Small-scale technology certificates
Small-scale renewable energy systems
Solar batteries are coming
Solar battery storage systems will be eligible under the Small-scale Renewable Energy Scheme from 1 July 2025.
Install a small-scale energy system
By installing an eligible renewable energy system you can lower your energy bills, reduce your carbon footprint and earn financial incentives.
Rooftop solar
Small-scale wind and hydro systems
Solar water heaters and air source heat pumps
Install rooftop solar
Our step-by-step guide to installing rooftop solar explains everything you need to know about installing solar at your home or business. It covers buying, installing and maintaining your solar system, using an agent, and creating and selling STCs.
Information for industry
Manufacturers and importers
Rooftop solar installers and designers
Rooftop solar retailers
Registered agents
How it works
Under the scheme, eligible systems can earn small-scale technology certificates (STCs) based on how much electricity they generate or displace. Each megawatt hour of renewable energy generated by the system is awarded one STC.
System owners have the right to create and sell STCs. Most system owners assign the right to sell STCs to an agent in exchange for a discount or delayed cash payment. STCs are then issued to the registered agent based on how much power the system is expected to generate until the scheme ends in 2030.
Energy retailers also have to buy and surrender a certain number of STCs to meet their obligations under the Renewable Energy Target. This creates a market for STCs so people who generate renewable energy can sell their certificates to retailers. The number of STCs they must submit is set by the small-scale technology percentage.
Who can participate
The scheme is designed for homeowners and businesses who want to reduce their electricity needs by using renewable energy systems. It's aimed at people who want to use their own system's generated energy or share generated energy from the grid via batteries.
To participate, individuals and small businesses must choose and install an eligible renewable energy system.
Financial incentives available outside of the scheme
In addition to financial incentives offered under the RET, individuals and small businesses who install a small-scale system may also be eligible for feed-in tariffs. Feed-in tariffs are designed to pay you for excess electricity generated and fed into the main grid by your small-scale renewable energy system.
State and territory governments regulate and oversee the administration of feed-in tariffs, which may vary depending on where you live. To find out if you are eligible for a feed-in tariff, you will need to contact your state or territory government, or electricity retailer who will provide you with further information, and if you are eligible, will help you apply.
Our role
We administer the scheme by:
- ensuring scheme compliance
- reviewing STC applications
- managing system inspections
- keeping the register of solar water heaters
- educating industry on how the scheme works
- taking compliance action where necessary.
The Department of Climate Change, Energy, the Environment and Water oversees the Renewable Energy Target. Read the policy intent on the department’s website.
