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.

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Information for householders

By installing a renewable energy system at your home or business you can lower your energy bills, reduce your carbon footprint and earn financial incentives.
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Renewable energy
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Small-scale renewable energy systems

What households and businesses need to know about picking an energy system.
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Renewable energy
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Small-scale technology certificates

Learn about small-scale technology certificates under the Small-scale Renewable Energy Scheme.
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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.

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Rooftop solar

Follow our step-by-step guide to find out everything you need to know about installing rooftop solar.
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Small-scale wind and hydro systems

Learn about wind turbines and hydro systems and if they're eligible for certificates.
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Renewable energy
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Solar water heaters

Learn about eligible solar water heaters and follow our step-by-step guide to installing a solar water heater.
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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.

Install rooftop solar

Information for industry

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Manufacturers and importers

What you need to know as a manufacturer or importer of small-scale renewable energy systems.
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Rooftop solar installers and designers

Learn about your rooftop solar requirements as installers and designers to meet small-scale system eligibility.
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Rooftop solar retailers

Learn about your obligations and practice standards as a solar retailer.
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Registered agents

What you need to know about your responsibilities as a registered agent helping individuals and small businesses.
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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​.​​

Find out more about STCs.

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.

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