Large-scale Renewable Energy Target (LRET): This rebate is designed for larger-scale renewable energy installations, including solar farms and large wind turbines. It is a quota-based system that requires electricity retailers to acquire a certain amount of electricity from renewable sources. The LRET scheme creates Large-scale Generation Certificates (LGCs), which can be sold by the renewable energy generator to offset the cost of the installation.

The LRET scheme was introduced to encourage investment in large-scale renewable energy projects and reduce greenhouse gas emissions. By setting a target for renewable energy generation, the scheme creates a market for renewable energy certificates, which helps to drive investment in renewable energy infrastructure.

Under the LRET scheme, electricity retailers are required to purchase a certain number of LGCs each year, based on the proportion of electricity they sell. This creates a demand for renewable energy generation and provides a financial incentive for renewable energy developers to build new projects.

The LGCs are created based on the amount of renewable energy generated by a project and are sold on the open market. This provides an additional source of revenue for renewable energy developers, helping to offset the upfront costs of building renewable energy projects.

Overall, the LRET scheme has been successful in driving investment in large-scale renewable energy projects in Australia. It has helped to increase the proportion of renewable energy in the electricity mix and reduce greenhouse gas emissions, contributing to Australia’s overall climate change goals.