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- Policies and initiatives
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- Applying to export rough diamonds
- Applying to export uranium and controlled ores
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- Regulating offshore oil and gas in Australian Commonwealth waters
- Regulating the Ranger Uranium Mine
- Taxes and royalties on minerals and petroleum
Measurement
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- Funding and incentives
Emissions reduction
Industry innovation and science
- Australian Square Kilometre Array Fellowships Programme
- Business Research and Innovation Initiative
- Business-research collaboration
- Collaborating with Asia-Pacific on science, research and innovation
- Collaborating with China on science and research
- Collaborating with India on science and research
- Cooperative research centres
- Enabling international space investment
- Industry 4.0
- Inspiring Australia: Science engagement in Australia
- International research collaboration
- Moon to Mars: opportunities for Australian businesses
- Prime Minister's Prizes for Science
- Research and Development Tax Incentive
- Supporting advanced manufacturing
- Supporting business and innovation
- Supporting space infrastructure growth
- Transitioning Australia’s automotive manufacturing industry
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- Anti-Dumping Review Panel
- Australian Radioactive Waste Agency
- Australian SKA Office
- Australian Space Agency
- Critical Minerals Facilitation Office
- National Measurement Institute
- Office of Innovation and Science Australia
- Office of Northern Australia
- Office of the Chief Economist
- Office of the Chief Scientist
Who we work with
Reporting and accountability
- Annual report
- Assurance and Audit Committee
- Budget statements
- Campaign Certification Statements
- Continuing Order of the Senate
- Corporate plan
- Deregulation agenda
- Freedom of information
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- Grants reporting
- Information Publication Scheme
- Our contracts
- Privacy impact assessments
- Public interest disclosure
- Senate Order 15: portfolio appointments and vacancies
Our online presence
Contact
- Publications
- News
- Policies and initiatives
Emissions reduction
Industry innovation and science
- Artificial intelligence
- Australian Radioactive Waste Agency
- Australian Space Agency
- Boosting innovation and science
- Co-hosting the Square Kilometre Array
- Increasing international collaboration
- Industry growth centres
- Industry Innovation and Science Australia
- National Measurement Institute
- Optical astronomy in Australia
- Participating in the digital economy
- Promoting innovation precincts
- Science in our department
- Science, technology, engineering and mathematics (STEM)
Energy
Resources
Northern Australia
Trade
Business support
Measurement services
Government to government services
- Regulations and standards
Emissions reduction
Energy
Resources
- Applying to export rough diamonds
- Applying to export uranium and controlled ores
- Offshore mineral exploration and mining
- Offshore oil and gas exploration and development
- Offshore petroleum exploration acreage release process
- Regulating offshore oil and gas in Australian Commonwealth waters
- Regulating the Ranger Uranium Mine
- Taxes and royalties on minerals and petroleum
Measurement
Trade
Space industry
Building industry
Business support
- Funding and incentives
Emissions reduction
Industry innovation and science
- Australian Square Kilometre Array Fellowships Programme
- Business Research and Innovation Initiative
- Business-research collaboration
- Collaborating with Asia-Pacific on science, research and innovation
- Collaborating with China on science and research
- Collaborating with India on science and research
- Cooperative research centres
- Enabling international space investment
- Industry 4.0
- Inspiring Australia: Science engagement in Australia
- International research collaboration
- Moon to Mars: opportunities for Australian businesses
- Prime Minister's Prizes for Science
- Research and Development Tax Incentive
- Supporting advanced manufacturing
- Supporting business and innovation
- Supporting space infrastructure growth
- Transitioning Australia’s automotive manufacturing industry
- Venture capital
Resources
- About us
COVID-19
Jobs
Who we are
- Our Ministers
- Our Executive team
- Organisation chart
- Our portfolio agencies
- Overseas engagement
- Anti-Dumping Commission
- Anti-Dumping Review Panel
- Australian Radioactive Waste Agency
- Australian SKA Office
- Australian Space Agency
- Critical Minerals Facilitation Office
- National Measurement Institute
- Office of Innovation and Science Australia
- Office of Northern Australia
- Office of the Chief Economist
- Office of the Chief Scientist
Who we work with
Reporting and accountability
- Annual report
- Assurance and Audit Committee
- Budget statements
- Campaign Certification Statements
- Continuing Order of the Senate
- Corporate plan
- Deregulation agenda
- Freedom of information
- Gifts and benefits register
- Grants reporting
- Information Publication Scheme
- Our contracts
- Privacy impact assessments
- Public interest disclosure
- Senate Order 15: portfolio appointments and vacancies
Our online presence
Contact
- Publications
- News
- Home
- Funding and incentives
- Emissions reduction
- Renewable Energy Target scheme
On this page
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.
Emissions-Intensive Trade-Exposed activities under the RET
A 100% exemption from RET liability is applied to electricity used in carrying out eligible emissions-intensive trade-exposed (EITE) activities. Companies that conduct an eligible EITE activity may be issued with an exemption certificate by the Regulator.
EITE activities are specified in the Renewable Energy (Electricity) Regulations 2001.
Guidance for determining EITE activity boundaries are described in the instrument Emissions-Intensive Trade-Exposed Activity Boundaries.
Responsibility for the RET
Our department provides policy advice and implementation support for the RET scheme.
The Regulator oversees the operation of the RET scheme in accordance with the RET legislation:
- Renewable Energy (Electricity) Act 2000
- Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Act 2010
- Renewable Energy (Electricity) (Large-scale Generation Shortfall Charge) Act 2000
- Renewable Energy (Electricity) Regulations 2001
Read more
- View the Clean Energy Regulator’s website
- Read about Australia's domestic climate change strategies
See also
The Emissions Reduction Fund incentivises Australian businesses to cut the amount of greenhouse gases they create
Last updated: 2 February 2021
Content ID: 67464