In 1777 he was appointed Secretary of the Royal Chamber of George III in Hanover, where he made the acquaintance of two of William Herschel's brothers.
Herschel's discovery of Uranus in 1781 inspired Schröter to pursue astronomy more seriously, and he resigned his post and became chief magistrate and district governor of Lilienthal.
In 1791, he published an important early study on the topography of the Moon entitled Selenotopographische Fragmente zur genauern Kenntniss der Mondfläche.
The visual lunar albedo scale developed in this work was later popularised by Thomas Gwyn Elger and now bears his name.
In 1813, he suffered the disruptions of the Napoleonic Wars: his work was ruined by the French under Vandamme, who destroyed his books, writings and observatory.