A Call to Expand and Electrify
The Small-scale Renewable Energy Scheme (SRES) has been a cornerstone of Australia’s renewable energy success story. Since its inception, it has fueled the rapid adoption of rooftop solar, solar hot water systems, and heat pumps, making Australia a global leader in renewable energy uptake. However, as the scheme is slated to phase out by 2030, there’s growing pressure to not only extend its lifespan but also to expand its scope to include home batteries and electrification incentives.
What Is the SRES and How Does It Work?
The Small-scale Renewable Energy Scheme (SRES) incentivizes households and small businesses to install renewable energy systems. Under this scheme, eligible installations generate Small-scale Technology Certificates (STCs) based on the amount of energy they are expected to produce or save.
These STCs have monetary value and are typically sold to energy retailers, reducing the upfront costs of installing solar systems, heat pumps, or solar hot water. This mechanism has been instrumental in helping Australians transition to renewable energy, significantly lowering barriers to entry for households and small businesses.
However, the SRES is scheduled to phase out by 2030, with incentives being gradually reduced over time. While this aligns with the original intent of the scheme, many argue that its early retirement would miss a golden opportunity to further Australia’s emissions reduction goals.
Why Expand the SRES? The Case for Electrification and Batteries
As Australia grapples with the need to decarbonize its energy system, the SRES offers a proven framework that could be adapted to address new challenges. A revamped SRES could:
- Incentivize Home Batteries: Adding home batteries to the scheme would allow households to store excess solar power and use it during peak demand, reducing reliance on the grid and minimizing grid instability issues like the duck curve.
- Support Electrification: By encouraging the installation of energy-efficient electric appliances—like electric water heaters, heat pumps, and induction cooktops—the scheme could help households transition away from gas, a significant contributor to Australia’s emissions.
- Bridge Equity Gaps: Expanding the SRES would make clean energy upgrades more accessible to a wider range of households and small businesses, ensuring that the benefits of electrification are distributed fairly across the population.
Why Act Now?
Recent reports highlight the urgency of these changes. The 2024 Federal Emissions Projections Report revealed that emissions from gas and transport have actually increased since 2005, highlighting gaps in Australia’s emissions reduction progress.
The Energy Savings Industry Association (ESIA) has emphasized that a revamped SRES could fill these gaps by providing incentives for households to transition away from gas and install batteries. Without these changes, rooftop solar’s success may inadvertently worsen grid instability by continuing to pump excess power into the grid during times of low demand.
The Connection Between SRES, STCs, and Solar Success
The SRES, powered by the STC mechanism, has made Australia a global leader in rooftop solar adoption. These certificates provide direct financial support for households, making it more affordable to invest in solar systems.
However, the flip side of this success is the increasing pressure on the grid during sunny, low-demand periods. Without further incentives for battery storage, the benefits of rooftop solar could begin to outweigh its challenges, such as grid instability.
Expanding the SRES to include batteries could create a balanced approach that allows households to store excess energy rather than export it, supporting grid stability while maximizing the financial returns of solar households.
A Look Beyond 2030: The Path Forward
Rather than phasing out the SRES, industry leaders are calling for an ambitious target beyond 2030. For example, simple modifications to the existing framework could enable the deployment of 10,000 MW of batteries by 2030, ensuring Australia continues to lead the renewable energy charge.
Expanding the scheme to include batteries and electrification incentives would deliver dual benefits:
- Households save money by reducing reliance on gas and accessing stored solar energy during peak periods.
- Grid stability improves, thanks to greater adoption of batteries and demand management technologies.
What This Means for You
If you’re a homeowner or business owner, the potential expansion of the SRES is great news. It means more opportunities to:
- Save money on clean energy upgrades like solar, batteries, and energy-efficient appliances.
- Reduce reliance on gas and transition to an all-electric home.
- Take control of your energy use, storing solar power during the day and using it when electricity prices peak.
Let Eon Advisory Help You Navigate the Energy Transition
At Eon Advisory, we specialize in helping households and businesses unlock the full potential of renewable energy systems. Whether you’re considering solar installation, battery storage, or transitioning to an all-electric home, our team can guide you every step of the way.
Contact us today at Eon Advisory for a free consultation and learn how you can take advantage of the current SRES incentives—and prepare for what’s next. Let’s work together to make your energy future brighter, cleaner, and more cost-effective!