Small-scale Renewable Energy Scheme in South Australia

Small-scale Renewable Energy Scheme in South Australia: A Turning Point for a Sustainable Future

Small-scale Renewable Energy Scheme in South Australia: A Turning Point for a Sustainable Future


South Australia is at the forefront of the renewable energy transition in Australia, with the state government setting ambitious targets to reach 100% renewable energy generation by 2030 [1]. The Small-scale Renewable Energy Scheme (SRES) plays a vital role in achieving this goal by supporting households and businesses in adopting renewable energy solutions. This article outlines the critical aspects of the SRES in South Australia, its benefits and impact, and the future prospects of renewable energy in the state.

Small-scale Renewable Energy Scheme: Overview and Mechanism

The SRES, established under the Australian Government's Renewable Energy (Electricity) Act 2000, incentivizes adopting small-scale renewable energy systems, such as solar panels, solar water heaters, and small wind turbines [2]. The scheme operates by issuing Small-scale Technology Certificates (STCs) that can be sold or traded to liable entities such as electricity retailers. The market supply and demand, along with the system's location, size, and installation date, determine the STC value [3].

Under the SRES, eligible systems in South Australia can generate STCs for up to 15 years, providing financial incentives that help reduce the upfront cost of renewable energy installations [4]. The Clean Energy Regulator (CER) oversees the scheme, ensuring compliance and managing the STC market [5].

Benefits and Impact of the SRES in South Australia

The SRES has facilitated the widespread adoption of small-scale renewable energy systems across South Australia. As of December 2020, over 262,000 small-scale solar installations have been deployed, making South Australia the fourth-highest state in Australia for solar uptake [6]. This growth in renewable energy installations has had numerous positive effects:

  • Environmental: By promoting renewable energy sources, the SRES helps reduce greenhouse gas emissions and mitigates climate change [7]. Additionally, unlike fossil fuel-based power plants, solar power systems have a minimal environmental impact during operation.
  • Economic: The SRES has created a thriving market for small-scale renewable technologies, generating local employment opportunities and contributing to the state's economic growth [8]. Moreover, it reduces the payback period for renewable energy investments, making them more financially viable for households and businesses.
  • Energy security: The SRES aids in diversifying the state's energy mix, reducing reliance on fossil fuels, and enhancing energy security. It also helps meet demand during peak times, alleviating pressure on the electricity grid [9].

The Future of Renewable Energy in South Australia

The success of the SRES has laid a strong foundation for South Australia's renewable energy transition. The state government's commitment to achieving 100% renewable energy generation by 2030 and its plans to establish a hydrogen export industry further demonstrate the potential for growth in this sector [10].

To maintain momentum, South Australia must continue supporting renewable energy adoption, investing in research and development, and fostering collaborations between industry, academia, and the government. This integrated approach will ensure South Australia remains a global leader in renewable energy and achieves a sustainable, low-emissions future.


The Small-scale Renewable Energy Scheme has played a significant role in driving the adoption of renewable energy systems in South Australia. The scheme has facilitated widespread solar installations by providing financial incentives, contributing to environmental, economic, and energy security benefits. As South Australia transitions towards a sustainable energy future, ongoing support and investment in renewable energy initiatives like the SRES will be crucial to achieving long-term success.


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