Australia’s Renewable Energy Target (RET) is a Federal Government policy designed to ensure that at least 33,000 gigawatt-hours (GWh) of Australia’s electricity comes from renewable sources by 2020.
About the Renewable Energy Target
The RET consists of two main schemes:
- The Large-scale Renewable Energy Target (LRET) requires high-energy users to acquire a fixed proportion of their electricity from renewable sources. This occurs in the form of large-scale generation certificates (LGCs), which are created by large renewable energy power stations (such as solar or wind farms) and then sold to high-energy users who must surrender them to meet their obligations under the LRET.
- The Small-scale Renewable Energy Scheme (SRES) provides a financial incentive for individuals and businesses to install small-scale renewable energy systems such as rooftop solar, solar water heaters and heat pumps. This occurs in the form of small-scale technology certificates (STCs), which are issued up front for a system’s expected power generation (based on its installation date and geographical location) until the SRES expires in 2030. Similar to the LRET, large energy users are required to purchase a fixed proportion of STCs and surrender them to meet their obligations under the RET.