The Federal Government has released details of its plan to source 20 per cent of Australia's electricity from renewables by 2020.
The draft legislation to deliver the Renewable Energy Target includes a new rebate for for households, small businesses and community groups that install solar systems.
The 20 per cent target was an election promise and Treasurer Wayne Swan says it builds on the carbon pollution reduction scheme.
"Legislation that we're putting forward today will really turbocharge renewable energy use in this country, particularly solar energy," he said.
"It will build upon the incentives in the carbon pollution reduction scheme to build a low pollution economy with green jobs for the future, whilst protecting our economy."
The Federal Government is also setting up a new scheme that it says will make installing solar panels more affordable.
The legislation includes giving up to $7,500 worth of credits to help pay the up-front cost of installing solar panels.
The Greens say the Government should be setting up a feed-in tariff to guarantee prices, instead of a credits scheme.
But Environment Minister Peter Garrett says the scheme will be a strong incentive for people to install solar panels.
"It is available to everybody. It's available to households, it's available to community groups, it's available to businesses," he said.
"It allows for around a $7,500 solar credit for anybody that wants to install new, small-scale renewable technologies in their homes, their businesses or their community groups."
