Minister for Industry Ian Macfarlane says the review will consider the contribution of the RET in reducing emissions, its impact on electricity prices and energy markets, as well as its costs and benefits for the renewable energy sector, the manufacturing sector and Australian households.
It will report back to the government by the end of the year.
Mr Mcfarlane says Australia's diversity of energy sources is one of Australia's greatest national strengths and renewable energy is an important part of that but the government must ensure that the program is operating effectively.
"Well one of the things we want to do with this review is establish the actual cost of renewable energy and of the other schemes that states have put in place," Mr Mcfarlane said.
"At the moment there is a blurring of what costs what and I think it will be useful for all involved including householders to know which schemes are costing them what intheir power bill"
