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STP, liable entities and scheme mechanics

What legislation governs STCs and the SRES?

Short answer

STCs and the Small-scale Renewable Energy Scheme are governed by the Renewable Energy (Electricity) Act 2000 and the Renewable Energy (Electricity) Regulations 2001, with the shortfall charge in companion Acts. The Clean Energy Regulator administers them.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026 · For installers and homeowners

Installers rarely read legislation, and rarely need to. But when a trader, a customer or an auditor says “that is not allowed”, the answer sits in one of three places.

The Act

The Renewable Energy (Electricity) Act 2000 is the foundation. It establishes the Renewable Energy Target, sets out who can create certificates, defines liable entities and gives the Clean Energy Regulator its powers: accrediting power stations, registering persons, auditing claims and enforcing the scheme. When people search for “Renewable Energy Electricity Act 2000 STCs” they want this one. Companion Acts set the shortfall charge a liable entity pays when it falls short of its obligation.

The Regulations

The Renewable Energy (Electricity) Regulations 2001 hold the detail an installer actually feels. They define small generation units and solar water heaters, set the deeming periods and zone ratings used in the STC formula, the clearing house price, and rules about eligible products and installation. When the rules changed so that systems above 100 kW and up to 1 MW installed from 1 October 2026 create STCs with a fixed five-year deeming period, the change was made by amending these Regulations. See mid-scale solar STCs.

Batteries were added through the same instrument family: the Cheaper Home Batteries Program, from 1 July 2025, uses the Regulations to define battery eligibility, the factor schedule and the tiers.

Guidelines and standards

Alongside the law sit CER guidance (installer and agent guidelines, photo evidence rules, audit procedures) and Australian standards, such as AS/NZS 5139 for battery installation and AS/NZS 4777.2 for inverters. They are not legislation, but breaching them can mean a claim is rejected or a CEC listing is lost. See STC photo requirements and how STC audits work.

Reading it sensibly

You do not need to read statute to run a clean book. Know these points: the owner of the system holds the right to create STCs until they assign it; the installer must meet accreditation and standard requirements; and a system must use approved products. The statement an installer signs on a claim is a legal declaration. If the details are wrong, the CER can take certificates back.

From the desk Check the legislation.gov.au version dated after 1 October 2026 if you rely on a deeming period or a threshold. Regulations are amended often, and old PDFs circulate for years.

What this means for installers

Treat the CER as your day-to-day reference and the Act and Regulations as the tiebreaker. Our compliance desk reads claims against the current rules before lodgement; see how it works. For the regulator’s role, see who regulates the SRES, and for the 2026 changes, the regulatory summary. The STC trading pillar covers the commercial side.

Follow-up questions

People also ask

What is the Renewable Energy (Electricity) Act 2000?
It is the federal Act that created the Renewable Energy Target, including the rules for accrediting power stations, creating certificates, and liable entities surrendering them.
Where are the deeming periods set?
In the Renewable Energy (Electricity) Regulations 2001. The mid-scale solar change from 1 October 2026 was made by amending those Regulations.
Is the legislation the same as the CER guidelines?
No. The Act and Regulations are law. The CER publishes guidance that explains how it applies them, which is useful but not a substitute for the legislation.

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