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Australia invests in RegTech to save farmers and SMEs time and money

Australia is investing more than $33 million in technology to save farmers and small and medium-sized businesses (SMEs) time and money while also increasing investment opportunities. 

Angus Taylor, the Minister for Industry, Energy and Emissions Reduction, stated that the investment will save over 500 SMEs participating in the Renewable Energy Target over $24 million per year by eliminating time-consuming manual reporting.

“Farmers will also save around $50,000 per Emissions Reduction Fund project with a new smartphone application to increase their carbon market participation,” Minister Taylor said.

Minister for Agriculture and Northern Australia, David Littleproud, said this is a win for farmers. “The app will provide farmers the best technology and tools to help them identify areas of carbon potential and report on the progress of their carbon projects,” Minister Littleproud said.

“Farmers are the stewards of over 50 per cent of our land and deserve to be rewarded. Lower costs of participation mean more money in their pocket.”

Minister Assisting the Prime Minister and Cabinet Ben Morton said the funding will be implemented over the next four years as part of the government’s Deregulation Agenda.

“RegTech is a game-changer in solving compliance and regulatory issues, but this innovative technology will also deliver results for the environment, the economy, farmers and business owners,” Minister Morton said.

“We are addressing a real need for Australian farmers and SMEs by improving data integrity and reducing time spent on data cleansing and verification checks.”

Small-scale Renewable Energy Scheme

Individuals and small businesses are given a financial incentive to install eligible small-scale renewable energy systems such as solar panel systems, small-scale wind systems, small-scale hydro systems, solar water heaters, and air source heat pumps under the Small-scale Renewable Energy Scheme. 

Credits: cleanenergyregulator.gov

This is achieved through the development of small-scale technology certificates, which Renewable Energy Target liable entities are required by law to purchase and surrender to the Clean Energy Regulator on a quarterly basis. 

Small-scale technology certificates are provided upfront for the expected power generation of the systems over a 15-year period, or, beginning in 2017, from the installation year until the scheme’s end in 2030.

About the Renewable Energy Target

The Renewable Energy Target is an Australian Government initiative designed to reduce greenhouse gas emissions in the electricity sector and encourage the generation of additional electricity from sustainable and renewable sources. 

The Renewable Energy Target works by allowing both large-scale power plants and small-scale system owners to generate large-scale generation certificates and small-scale technology certificates for each megawatt-hour of power generated. 

Certificates are then purchased by electricity retailers (those who provide electricity to homes and businesses) and submitted to the Clean Energy Regulator in order for the retailers to meet their legal obligations under the Renewable Energy Target.

How the scheme works

Small-scale renewable energy schemes, such as household solar rooftop panels and solar hot water systems, are supported by the Small-scale Renewable Energy Scheme. 

The Renewable Energy Target works by issuing tradable certificates that serve as an incentive to generate more electricity from renewable sources. The Clean Energy Regulator manages the REC Registry, an online trading platform where certificates are created and issued.

Further information about the Deregulation Agenda is available at: www.deregulation.pmc.gov.au.

Read more about Renewable Energy targets here.

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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