New Australian RET plan saves small-scale solar but leaves large-scale up for debate

Facebook
Twitter
LinkedIn
Reddit
Email

Small-scale solar has been granted a reprieve under the latest proposed reforms to the Australian renewable energy target (RET). 

In a joint statement from the minister for the environment and minister for industry and science, the government proposed a new approach to Australia’s renewable energy target RET.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The statement refers to the current RET as “broken” and recommends increasing the RET from 20% to 23% of Australia’s electricity in 2020 would come from renewables.

This plan is the result of the ongoing stand-off between the current Abbott Government and the opposition as well as the solar industry. Abbott had supposedly called for a complete abolishment of the RET, instead of the apparently more favourable reduction. The solar industry, as well as the opposition, jumped to protest this, resulting in ongoing negotiations.

The proposed plan would have 15,000GWh in existing renewable energy generation, 31,000GWh in large-scale renewable energy target, and 14,000GWh of small-scale renewable energy scheme. The small-scale energy target remains unchanged from the existing RET, a perceived success for the solar industry and opposition parties.

The government also plans on “remove[ing] the requirement for regular two-yearly reviews of the RET to give the industry the certainty it needs to move ahead.”

However, according to an email from John Grimes of the Australian Solar Council, the large-scale renewable energy target is not acceptable. In the email, he states: “The Abbott Government is not serious about a deal on the large-scale renewable energy target”.  This suggests that the negotiations on the RET will continue.

Minister for the environment Greg Hunt hopes that they will reach a consensus within the next two weeks, ABC reports. Hunt claims the government has been “flexible” in its approach to the RET negotiations.

Grimes believes that the next steps lie in the hands of the government, stating: “So where does the overnment go now? Well that's up to the government, but it's time that the government showed that they were fair dinkum about resolving this. This is too important to play politics with.”

If an agreement is not reached within the next two weeks, emissions-intensive industries will have to pay liabilities which may fall upon the consumers. The government hopes to avoid this by striking a deal with the opposition.

Read Next

May 15, 2026
Construction has commenced on New South Wales’ (NSW) first integrated green hydrogen and ammonia production facility in Australia.
May 15, 2026
ADB and Solomon Islands Electricity Authority (SIEA) have signed an agreement to develop the country's first large-scale solar PV plant.
May 14, 2026
MN8 Energy has raised US$300 million to extend a corporate credit facility that will build out its pipeline of US solar and storage projects.
May 14, 2026
Canadian Solar has posted a quarter-on-quarter decline in both solar module shipments and net revenues in the first quarter of 2026.
May 14, 2026
Kiwa PVEL has rolled out updates to its module testing programme, with two changes affecting Static Mechanical Load (SML) and hail testing.
May 14, 2026
Arava Power has acquired 50% of OCI Energy’s La Salle Solar project, a 670MW project that OCI expects to start commercial operations in 2028.

Upcoming Events

Solar Media Events
May 20, 2026
Porto, Portugal
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)
Solar Media Events
June 16, 2026
Napa, USA