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 batteries, solar water heaters and air sourced heat pumps.
Information for householders
Small-scale renewable energy systems
Small-scale technology certificates
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 batteries
Follow our step-by-step guide to find out everything you need to know about installing a solar battery.
Solar water heaters and air source heat pumps
Install solar batteries
Our step-by-step guide to installing solar batteries explains everything you need to know about installing solar batteries at your home or business. It covers buying, installing and maintaining your solar battery.
Information for industry
Manufacturers and importers
Rooftop solar installers and designers
Rooftop solar and solar battery retailers
Registered agents
Solar battery installers and designers
How it works
Under the scheme, eligible systems can earn small-scale technology certificates (STCs) based on how much electricity they generate, store/dispatch or displace. Each megawatt hour of renewable energy generated by the system is awarded one STC for systems that generate electricity. The usable capacity of solar batteries to store electricity is used to calculate the number of STCs the system may be registered for.
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.
Solar battery STCs are not used in the calculation of the small-scale technology percentage. Energy retailers are not required to buy them. Instead, they will be purchased periodically by the Australian Government.
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. By connecting your solar battery to a virtual power plant, you may also be able to sell stored electricity to the grid.
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.
We don’t regulate consumer law or electrical safety.
We have established compliance frameworks under the SRES that allow us to work closely with states and territories to support them to fulfil their obligations for electrical and safety regulation.
Our processes, inspections and infrastructure support state and territory electrical safety regulators, Solar Accreditation Australia and the Clean Energy Council to do their work to ensure:
- products and installations are safe and meet standards for electrical safety
- the people designing, selling and installing solar batteries are qualified and properly accredited.
