Electrical systems that generate energy from renewable sources may be eligible to participate in either the:

Under the schemes, eligible systems can claim small-scale technology certificates (STC) or large-scale generation certificates (LGC).

Each scheme has its own eligibility and compliance requirements. Generally a system can only claim benefits under one scheme. Upgraded or expanded systems may be eligible to claim under both schemes.

Before you decide to participate, make sure you understand which scheme suits your system, individual circumstances, commercial arrangements and professional skills.

Eligible systems

Different capacity limits apply to some common technologies for SRES and LRET.

 Small-scale Renewable Energy SchemeLarge-scale Renewable Energy Target
Solar PV System

No more than 100 kW rating.

Annual electricity output not more than 250 MWh.

More than 100 kW.

25 MWh or more.

Wind System

No more than 10 kW rating.

Annual electricity output not more than 25 MWh.

10 kW rating or more.

25 MWh or more.

Hydro System

No more than 6.4 kW rating.

Annual electricity output not more than 25 MWh.

6.4 kW or more.

Annual electricity output of 25 MWh or more.

Small-scale Renewable Energy Scheme eligibility

The SRES is for householders and businesses who want to reduce their use of grid electricity by using renewable energy systems. In particular, this includes eligible solar PV systems generating power up to 100 kW. The SRES is not intended for industrial-scale systems or for large projects that intend to export or sell power.

Five types of small-scale systems are eligible under the scheme:

  • solar photovoltaic systems
  • wind turbines
  • hydro systems
  • solar water heaters
  • air source heat pumps

Classification as a small-scale system is based on the system's capacity. Systems with higher capacity are classified as power stations under the LRET. Water heaters and air-sourced heat pumps aren't eligible under the LRET.

Find out more about eligible small-scale renewable energy systems.

  • Most householders and small businesses use a registered agent to claim STCs in return for an upfront discount on the cost of installing the system
  • The person claiming STCs applies to participate after the system is installed
  • Systems can't be pre-approved. Participants should check that their system will be eligible prior to installation and use approved products and installers. Eligibility is determined after the system is installed and an application is received

STCs are provided upfront after application for the amount of energy the system is assumed to generate or displace over a 10 year period.

Find out more about creating STCs.

Large-scale Renewable Energy Target eligibility

The LRET creates a financial incentive for large-scale renewable energy power stations, like wind and solar farms or hydro-electric power stations. It encourages investment in large projects seeking to export or sell power.

Large-scale renewable energy systems are classified as power stations. They include:

  • wind
  • solar
  • hydro
  • ocean
  • tide
  • eligible biomass
  • geothermal-aquifer
  • hot dry rock
  • landfill gas
  • sewage gas.

Find out more in Section 17 of the Renewable Energy (Electricity) Act 2000.

Power stations:

Find out more about power stations.

  • Power stations must measure generation to claim LGCs
  • LGCs are only issued for generation that has occurred
  • Evidence of renewable generation is required

Find out more about large-scale generation certificates.

Power stations:

  • can create LGCs each month
  • must submit an electricity generation return each year
  • must tell us if their system or stakeholders change.

Find out more about power stations obligations.