SRES, SRETS and “the small-scale scheme” all describe the same thing: the part of the Renewable Energy Target that pays for small renewable systems through certificates rather than grants.
What the scheme does
When you install an eligible system, the system owner (or an agent they assign the right to) can create STCs. One STC represents one megawatt-hour of electricity generated or displaced. For solar, the number is deemed up front: system size in kW, times a zone rating, times the deeming period in years. That is why a 6.6 kW system in Sydney gets a lump of certificates on day one rather than a stream over time. See the formula and deeming period and zone ratings.
The certificates are sold to the market, and electricity retailers eventually surrender them to meet their obligation (explained in the RET and STC obligation). The sale price comes off the customer’s quote as the “STC discount”.
What is covered
- Rooftop solar PV up to 100 kW, with STCs from the deeming calculation.
- Solar systems above 100 kW and up to 1 MW installed from 1 October 2026, with a fixed five-year deeming period. See mid-scale solar STCs. Above 1 MW stays in the large-scale scheme and earns LGCs.
- Solar water heaters and air-source heat pump water heaters. See hot water STCs.
- Home batteries, 5 to 100 kWh usable with up to 50 kWh counting, under the Cheaper Home Batteries Program from 1 July 2025. See battery STCs.
SRES versus the RET
The RET is the umbrella. The SRES is the small-scale half and the LRET is the large-scale half with LGCs for power stations. The SRES has no cap on certificates, which is different from the LRET’s fixed target. The difference is laid out in the RET explainer.
SRES end date: 2030
The scheme is legislated to end on 31 December 2030. Each year the solar deeming period drops by one: 5 years for 2026 installs, 4 for 2027, down to 1 in 2030. Batteries have their own six-monthly factor steps, 6.8 at the time of writing and 5.7 from 1 January 2027, continuing down to 2030. Policy can change, so check the Clean Energy Regulator for current settings. For what happens after, see when the STC scheme ends.
What this means for installers
The scheme shapes your quote, your cash flow and your timing. Quote the STC discount on the right deeming period, claim promptly, and pick a buyer who locks the rate when you lodge. Read the STC trading pillar, check today’s rate, or see how it works. For the 2026 changes in one place, see the 2026 SRES summary.