There are a lot to learn about RECs in depth. But lets just go straight to the point on “How RECs really benefits you”:
Solar Credits assist with the upfront costs of installing small-scale renewable energy systems, including household solar photovoltaic (PV) systems. Solar Credits, which is part of the expanded national Renewable Energy Target (RET) scheme, will provide extra Renewable Energy Certificates, which are also called RECs, to households and businesses that install eligible small scale solar PV, wind and hydro electricity systems.
Under the Solar Credits arrangements, eligible systems installed before mid-2012 will get five RECs for every REC the system would otherwise receive.
This is another reason of why you should get solar system now and not delaying your purchase. After mid-2012 you will get less RECs which means less rebates and more out iof pocket cost to get a solar system. So hurry get a firm quote from RME now!
Solar Credits apply to the first 1.5 kilowatts (kW) of capacity installed; generation from capacity above 1.5 kW will still be eligible for the standard 1:1 rate of RECs creation.
Zone 3 RECs (Sydney, Brisbane, Adelaide, Canberra & Perth)
1,5Kw System = 155 RECs X $40 = $6,200 point of sale discounts (You get $40/RECs when assigning RECs to us where RECs market currently at $35-$38/REC value)
Zone 4 RECs (Melbourne)
1,5Kw System = 133 RECs X $40 = $5,320 point of sale discounts (You get $40/RECs when assigning RECs to us where RECs market currently at $35-$38/REC value)
Please see our “RECs Calculator” section in order to calculate how many RECs you get for bigger system.
The reason why RME can pass on full benefit of $40/REC value is because RME has a locked in contract to trade RECs at $40/REC till end of December 2010. Again RME has thought about giving you the maximum benefit out this whole solar credit scheme. Another reason to choose RME.
State by State
Each State’s Solar Credits offer varies. A solar PV system in Melbourne or Hobart, for example, will receive fewer credits (RECs) because they get less sunshine therefore less renewable energy is produced.
Please see below RECs Zoning:
What is RECs?
In an attempt to reduce greenhouse gases, the Federal Government implemented the Renewable Energy (Electricity) Act (2000).Under this Act, a Mandatory Renewable Energy Target (MRET) was implemented which forces liable parties such as large electricity retailers to surrender a certain percentage of Renewable Energy Certificates (RECs) to the Government each year. These RECs ensure that a certain percentage of the large retailer’s energy generation is sourced from renewable energy. If the amount of REC’s required to be surrender to the Government is not reached, a monetary penalty is assigned to the liable for each REC that has not been supplied. Liable parties are required to buy these RECs from residents, businesses and even brokers. The fact that REC’s need to be sourced externally has created a live market for which RECs can be bought and sold and where standard market influencers manipulate the price of RECs (such as supply and demand, compliance dates).This means that the price for REC’s is volatile and can fluctuate daily.
RECs can be created when a solar hot water system, solar electricity system or heat pump system is installed. The solar installation can be a part of a new home or an existing home (in which case an existing storage tank or existing solar hot water system is replaced). The Federal Government gives the right to anyone who is the owner of a solar installation to create RECs. A REC is equivalent to 1 mega watt hour of renewable energy generation and the total number of RECs for a system is determined based on an energy efficiency rating provided by the Government and the area of installation. The owner of the solar installation would be required to complete a REC assignment form and send it to an agent registered with the Office of the Renewable Energy Regulator (ORER), the Government office that administers the scheme. This agent will be assigned the right to create the REC by the owner and then the agent will offer a price for the REC’s based on the market value. REC payment is made once the REC assignment form is lodged with ORER and this payment acts as the benefit the owner of the installation receives from the REC scheme.
