The Federal Government Renewable Energy Target (RET) is driving renewable energy by providing financial incentives to make installation more affordable and attractive.

The RET is split into two targets the Large-scale RET (LRET) for larger solar, wind, hydro “Power Stations” and the Small Scale Renewable Energy Scheme (SRES) that supports the installation of rooftop solar systems that are less than 100kW, solar water heaters, and other small renewable generators.

The SRES provides an upfront incentive based on the nominal generation through to 2030.

 

Category Name/Certificate Installations Residential Business Wattly Accredited
RET Small-Scale SRES / STC Solar PV < 100 kW, Wind < 10 kW,
Hydro < 6.4 kW, Solar water heaters ,
Air sourced heat pumps < 425L
YES YES YES
RET Large-Scale LRET / LGC Solar PV > 100 kW, Wind > 10 kW,
Hydro > 6.4 kW, Waste to energy,
Geothermal, Biogas
NO YES YES
  • Market Based Scheme

    • Market tradable certificates
    o LRET – Large Generation Certificates (LGCs) and
    o SRES – Small-scale Technology Certificates (STCs)
    • One certificate (STC or LGC) = 1 MWh (megawatt hour) of energy generated
    • STCs are deemed and calculated upfront for a number of years into the future
    • LGCs are created in arrears after the generation has occurred and must be recorded through metering. Calculation of LGCs includes losses for network
    distribution.
    • Certificates are bought and sold on the wholesale market in parcels of 5,000 through brokers
    • The certificate price is based on supply and demand and can be quite volatile.
    • The SRES target for 2017 is 12.4 million STCs
    • The LRET target for 2017 is 26 million LGCs and growing to 33 Million LGCs in 2020-2030
    o A fixed target with ever more generation will see a declining LGC price.

  • Market Demand

    • The scheme places and obligation on liable parties (usually energy retailers) to purchase both LGCs and STCs. Their obligation is proportional to the amount of energy they sell.
    • Energy Retailers face Penalties for failing to meet (surrender) their quota of certificates
    • Costs recovered from consumers (through charges on their electricity bills)

  • Market Supply

    • Accredited Businesses (under the CER) can create certificates
    o Installers and Registered Agents for STCs
    o Accredited Power Stations for LGCs
    • Certificates can only be created through using approved equipment and methods

  • Regulations

    • Federal Government Scheme regulated to 2030.
    • Two targets
    o Large-scale Renewable Energy Target (LRET) fixed after 2020,
    o Small-scale Renewable Energy Scheme (SRES) set each year
    • The Federal Clean Energy Regulator (CER) administers the scheme
    • The Federal Department of Environment is responsible for policy advice.

Wattly’s industry experience and knowledge of renewable energy markets can ensure the
success of your large scale renewable energy projects. Wattly is accredited in both SRES and
LRET.

 

About the SRES

The Small Scale Renewable Energy Scheme (SRES) supports the installation of rooftop solar systems under 100kW, solar water heaters, and other small renewable
generators, by providing an upfront discount in the form of Small Scale Technology Certificates (STCs). Equipment used in upgrades must be approved by the Clean Energy
Council. STCs for a system are calculated from an estimate of the energy generation and can be deemed upfront for the entire remaining period of the scheme (ends in
2030).
STCs can be sold either through the Spot Market, which is dependent on supply and demand and typically varies between $30 and $40 per STC, or the Clearing House,
which provides a fixed price of $40 per STC at the point of purchase by a buyer.
Wattly has a streamlined process for STC creation for small renewable generators and solar water heaters, taking the fuss out of accessing your system’s funding.

 

About the LRET

The Large Scale Renewable Energy Target (LRET) creates a financial incentive that rewards electricity generation from renewable energy power stations, such as wind and
solar farms, and biomass electricity generators. Commercial rooftop solar systems over 100kW are eligible for LGCs, and multiple smaller systems at a single facility may
also be eligible to be aggregated into a LRET power station.
Certificates are created annually in arrears for each MWh of generation. The scheme will continue to operate until 2030, and can thus provide a valuable income source
from your commercial solar system or renewable power station.
The challenge, however, is that gathering the right data, registering your power station, and negotiating with the Clean Energy Regulator to get access to the LGCs can be
complicated and time consuming. Not only that, but you need to have a registry account, find a buyer for the LGCs, and ensure you get a good price. This can be difficult
and you don’t know if you are getting a good deal.
Wattly helps owners of eligible renewable energy power stations access Large Scale Generation Certificates (LGCs), get their power station developed and earn certificate
revenue.

Partnering with Wattly

Wattly partners with businesses involved in energy efficiency and
renewable energy installations to enable them to financial based
incentives under the state and federal schemes.

Wattly partners with both energy efficiency installation companies, electricians, equipment
suppliers and end businesses performing upgrade

Get in touch

For further information, or to discuss how Wattly can help you, please call us.

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