Renewable Energy

A significant percentage of Australia's total electricity generation comes from renewable energy sources including wind(7%), solar(7%) and hydro(5%). Large-scale solar generation has grown from negligible levels before 2016 to 2% of all Australian electricity generation in 2019, representing a three-year growth rate of 825%.

Renewable Energy Target scheme

The Renewable Energy Target (RET) scheme encourages the additional generation of electricity from renewable sources to reduce greenhouse gas emissions in the electricity sector.

The RET comprises two schemes.

Large-scale Renewable Energy Target

The Large-scale Renewable Energy Target (LRET) incentivises investment in renewable energy power stations, such as wind and solar farms, or hydro-electric power stations, by legislating demand for large-scale generation certificates (LGCs). One LGC can be created for each megawatt hour of eligible renewable electricity produced. LGCs can be sold to liable entities (mainly electricity retailers) who buy and surrender the LGCs to the Clean Energy Regulator to demonstrate their compliance with the scheme's annual targets. In turn, the LGCs provide the power station with a source of revenue additional to the sale of the electricity generated.

The Regulator has advised there are now sufficient projects approved to meet and exceed the 2020 target of 33,000 gigawatt hours of additional renewable electricity. The annual target will remain at 33,000 gigawatt hours until the scheme ends in 2030.

Small-scale Renewable Energy Target

The Small-scale Renewable Energy Scheme (SRES) incentivises households, businesses and the community to install eligible small-scale systems such as rooftop solar panels, solar water heaters, small-scale wind or hydro systems by legislating demand for small-scale technology certificates (STCs). STCs are created at the time of installation according to the system’s deeming period—the estimate of years the system will create renewable energy from installation until 2030. Liable entities have a legal requirement to buy and surrender STCs to the Regulator quarterly.

While it is possible for the system owner to create and sell the STCs themselves, installers of these systems usually offer a discount on the price of installation in return for the STCs.

experienced team offers a range of services including:

• Claiming STC/LGC and Recording
• Business Advisory
• Commercial Impacts
• Maintaining accounting records in compliance with relevant accounting standards