Australia Renewable Energy Act: Sections 23A & 23B STC Creation Guide
Updated 6 September 2026 · By SolarNevs Research Desk, Dealer surveys + verified sources · 1 source · Method ↗
Key Takeaways
- Subdivision BA of the Renewable Energy (Electricity) Act 2000 governs Small-scale Technology Certificates (STCs) for solar PV and small generation units.
- Section 23A mandates that STCs can only be created after the unit is physically installed and verified as operational.
- Requires submission of installation compliance documentation verified by statutory declaration to the Clean Energy Regulator.
- Section 23B establishes that each small-scale certificate represents 1 MWh of deemed clean electricity generation.
- Defines off-grid small generation units as systems located at least 1 km from main-grid lines or with connection quotes exceeding $30,000.
Statutory Purpose of Subdivision BA
Under the Renewable Energy (Electricity) Act 2000, Subdivision BA (Small-scale technology certificates for small generation units) establishes the core economic engine of Australia's Small-scale Renewable Energy Scheme (SRES).
Section 23A and Section 23B set clear statutory boundaries, ensuring that financial incentives are strictly tethered to physically commissioned, functional renewable energy assets.
STC Creation Prerequisites & Deeming Framework
The Clean Energy Regulator administers STC creation across four statutory benchmarks:
Statutory Parameter | Legislative Provision | Operational Compliance Requirement |
|---|---|---|
Creation Timing | Created only after the small generation unit is installed | Post-installation creation prohibits forward-claiming before commissioning |
Unit Functionality | Certificates barred unless the unit remains functional | System must be fully energized, producing power, and free of inverter faults |
Evidentiary Standard | Documents given to Regulator must be verified by statutory declaration | SAA installers and registered agents must certify on-site photo compliance |
Deemed Value | Each certificate represents 1 MWh of deemed generation | Multiplies rated DC capacity by solar zone deeming rate and remaining deeming years |
Off-Grid Qualification | Located >=1 km from grid or connection cost >$30,000 | Enables regional agricultural solar arrays to qualify for off-grid deeming rules |
Compliance Rules for Solar Retailers and Installers
To guarantee valid STC creation under Section 23A & 23B:
- Verify Complete Physical Installation: Ensure panels, racking, and inverters are fully installed before initiating REC Registry certificate creation.
- Maintain Operational Telemetry: Retain testing and commissioning records proving the solar PV unit is fully functional.
- Execute Accurate Off-Grid Documentation: If claiming off-grid status within 1 km of the grid, secure formal network service provider quotes exceeding $30,000 prior to submission.
Frequently asked questions
When can Small-scale Technology Certificates (STCs) be created under Section 23A?
Under Section 23A(1), if a small generation unit is installed on or after 1 April 2001, certificates may be created after the small generation unit is installed (August 2026).
What ongoing condition applies to small generation units under Section 23A(1B)?
Conditions may be imposed so that certificates cannot be created in relation to a small generation unit unless the unit remains functional (August 2026).
What energy quantum does each small-scale certificate represent under Section 23B?
Under Section 23B(1), the number of certificates is determined in accordance with regulations, each representing 1 MWh of deemed generation (August 2026).
What qualifies as an off-grid small generation unit under Section 23B(3B)?
A unit at least 1 km from the main grid, or where the NSP provides written evidence that grid connection costs exceed $30,000 making it uneconomic (August 2026).
References
- Federal Register of Legislation: Renewable Energy (Electricity) Act 2000 — accessed 31 August 2026
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