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Commonwealth act
The Renewable Energy (Electricity) Act 2000 is Australia's main framework for encouraging more electricity generation from clean, renewable sources like wind, solar, hydro, geothermal, and biomass. It runs from 2001 until the end of 2030.
The law creates a certificate trading system with two types of certificates:
Large-Scale Generation Certificates (LGCs): Earned by operators of accredited power stations (think large wind farms or hydro plants) for every megawatt-hour (MWh) of additional renewable electricity they generate above a historical 1997 baseline. These reward large renewable energy producers.
Small-Scale Technology Certificates (STCs): Earned by homeowners and businesses who install solar panels, solar hot water systems, or air-source heat pump water heaters. These reward smaller-scale renewable installations.
Electricity buyers ("liable entities"): Large businesses and electricity retailers who buy wholesale electricity must surrender a set number of certificates each year — essentially proving they've supported a required amount of renewable energy. If they don't have enough certificates, they must pay a shortfall charge (a financial penalty).
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Direct links to the current provisions in Renewable Energy (Electricity) Act 2000.
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View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Renewable energy generators: Wind farms, solar farms, hydro plants, and similar facilities can earn certificates and sell them — creating an extra income stream on top of selling electricity.
Homeowners and small businesses: Installing rooftop solar or solar hot water systems earns certificates, which can be sold (typically back to installers as a point-of-sale discount — this is why solar panel deals often include a discount upfront).
Energy-intensive exporters: Businesses in industries like aluminium smelting or mining (so-called "emissions-intensive trade-exposed" industries) can apply for partial exemptions to reduce their certificate obligations, protecting their international competitiveness.
The Clean Energy Regulator administers the scheme. It can: