The Small-scale Renewable Energy Scheme (SRES) is targeted towards residential and small-scale commercial installations. Under this scheme, eligible participants receive Small-scale Technology Certificates (STCs) for every megawatt-hour of electricity their Solar system is expected to generate over a 15-year period. These STCs can be sold to electricity retailers or other liable entities, who are required to surrender a certain number of STCs each year to meet their renewable energy obligations.
The value of STCs is determined by market forces and can fluctuate. The number of STCs that can be claimed for a Solar system depends on its size, location, and the amount of renewable energy it is expected to generate. The value of the Rebate is deducted from the upfront cost of the Solar system, reducing the overall cost for the homeowner or business.
The Large-scale Renewable Energy Target (LRET) is aimed at encouraging large-scale renewable energy projects, including Solar farms. Under this scheme, power stations and large-scale Solar installations can create Large-scale Generation Certificates (LGCs) for every megawatt-hour of eligible renewable electricity they generate. Similar to STCs, LGCs can be sold to liable entities to meet their renewable energy obligations.
The LRET operates through a market-based mechanism, with the value of LGCs determined by supply and demand. The revenue generated from selling LGCs can help offset the upfront costs of constructing and operating large-scale Solar projects, making them more financially viable.
Both the SRES and LRET are administered by the Clean Energy Regulator, which oversees the creation, registration, and trading of renewable energy certificates in Australia. These Rebate programs have been effective in driving the adoption of Solar energy, reducing greenhouse gas emissions, and promoting renewable energy generation across the country.