According to the Clean Energy Council 2024 report, renewable energy now accounts for nearly 40% of Australia’s total energy supply.[1]  With the national target set at 82%, all electricity supplied in Australia must come from renewable sources by 2030.[2]

Achieving this ambitious goal requires widespread participation and community engagement. Businesses can play a crucial role in this transition by participating in the Renewable Energy Target (RET). The RET is a government policy that mandates 33,000 gigawatt-hours (GWh) of Australia’s electricity come from renewable sources by 2020 and beyond[3]. It is administered through two main schemes: the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES).

Understanding the Renewable Energy Target (RET)
The LRET encourages investment in renewable energy power stations such as wind and solar farms, and hydro-electric power stations. Under this scheme, renewable energy power stations can generate Large-scale generation certificate (LGC) for the energy they produce. One LGC is equal to one megawatt-hour (MWh) of electricity generated and fed into the grid from a renewable energy source. Participants in this scheme include renewable energy project developers, electricity retailers and other large electricity consumers[4].

The SRES incentivises businesses and households to install small-scale renewable energy systems, including rooftop solar panels, solar water heaters, and small-scale wind or hydro systems. Under the SRES, eligible systems can earn small-scale technology certificates (STCs) based on the energy they generate or displace. Each MWh of renewable energy generated earns one STC. Participants include homeowners and businesses installing eligible renewable energy system[5].

For more information on eligibility requirements for the RET, visit the Department of Climate Change, Energy, the Environment and Water.

Benefits of embracing renewable energy
By supporting Australia’s renewable energy transition, businesses not only contribute to a more sustainable future but also stand to gain numerous benefits for their business operations.

• Cost Savings: By investing in renewable energy, businesses can reduce their dependance on traditional energy sources, which are often subject to price volatility. Once installed, renewable energy systems provide a more stable and predictable energy cost structure. According to the Clean Energy Council, businesses that have transitioned to renewable energy have experienced up to a 30% reduction in energy costs.[6]
• Competitive Advantage: As consumers become more eco-conscious, businesses that adopt sustainable practices can differentiate themselves in the market. By showcasing your commitment to renewable energy, your business can attract environmentally conscious customers and enhance its reputation.
• Energy Independence: Generating your own energy means reduced reliance on the grid, which can minimise the risk of energy supply disruptions. This independence can be a valuable asset for businesses looking to ensure operational continuity.

Conclusion
Embracing renewable energy through the Renewable Energy Target not only helps businesses reduce costs, but it also provides a competitive edge in an increasingly eco-conscious market. By investing in renewable energy systems and implementing energy efficiency practices, businesses can lead Australia into a more sustainable energy future while strengthening their bottom line.