The Amendment Act’s provisions effectively decouple the incentive mechanisms for small and large scale renewable energy production. The changes allow the Federal Government to more effectively regulate and control the two different kinds of renewable energy generation. This means the Government may (through amendments to the Regulations) increase or decrease the incentives for small-scale renewable energy generation, such as solar hot water systems and solar panels, without affecting the incentives for large-scale, commercial renewable energy generators.
The result is likely to be a more stable market for RECs, providing the certainty required for the future development of large-scale renewable energy projects whilst addressing the Federal Government’s target of sourcing 20 per cent of Australia’s electricity supply from renewable sources by 2020.
Please contact a member of our Climate Change team if you would like further information on the amendments to the RET scheme.