SRES (Small-scale Renewable Energy Scheme)

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026

SRES stands for Small-scale Renewable Energy Scheme. It is the half of the Renewable Energy Target (RET) that deals with households and small businesses. The other half is the large-scale scheme, which creates LGCs.

The scheme works by giving each eligible installation a certificate entitlement, then forcing electricity retailers to buy those certificates. The Clean Energy Regulator (CER) sets a Small-scale Technology Percentage (STP) each year, which tells retailers what share of their electricity sales must be covered by STCs. That demand is what funds the discount on your customer’s quote.

In practice

You rarely touch the scheme itself. What you touch is the output: a claim for a specific system, with photos, serial numbers and signed forms. The rules about what qualifies, how many certificates a system creates and what evidence is required all come from SRES law and CER guidance.

Three practical features of SRES shape an installer’s week:

• Up-front creation. Solar STCs are created for several years of expected output at once, which is why the discount can be applied on day one. See deeming period.
• Retailer demand. Prices move with the balance between STC supply and what retailers need to surrender.
• Compliance. The CER audits claims. A trader that buys from you takes some of that risk, but not all of it. See how STC audits work.

Common confusion

SRES is not the same as the Cheaper Home Batteries Program, although the program uses the SRES to create certificates. SRES is the legal engine, the battery program is a policy that feeds it. Likewise SRES is a federal scheme, so it is separate from state programs such as Victorian Energy Upgrades or the NSW schemes, which have their own certificates.

The scheme runs to 31 December 2030. After that, no new STCs are created under it.

Read the certificate trading glossary or the STC trading page for the next step.