Renewable Energy Certificates (RECs)

Dingo Solar is a registered agent for STCs (previously known as RECs) with ORER. In return for a point-of-sale discount on the price of your new hot water system or solar power system, we require you to assign your STCs to us. This is as simple as signing a form. We then sell the STCs, created as a result of the installation of your hot water heater or solar power system, on to a third party to recover the money from the discount.

 

Federal Government Mandatory Renewable Energy Target

The aim of the Federal Government’s renewable energy target (RET) is to increase the production of renewable energy. Under the target, all electricity retailers and wholesale buyers have a legal liability to contribute towards the generation of additional renewable energy. They are called ‘liable parties’, and meet their legal obligation by acquiring renewable energy certificates (RECs).

As of 1 January 2011, the enhanced Renewable Energy Target (RET) was split into two parts, the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES).

Both parts of the scheme have been established to encourage additional generation of electricity from renewable energy sources by providing a mechanism by which small-scale systems and renewable energy power stations can create and sell certificates based on how much renewable electricity they generate or displace.

The LRET and SRES are administrated by the Office of the Renewable Energy Regulator (ORER).

 

Small-scale Renewable Energy Scheme (SRES) and Small-scale Technology Certificates (STCs)

The SRES creates a financial incentive for owners to install eligible small-scale installations such as solar water heaters, air sourced heat pumps and small generation units (small-scale solar panel, wind and hydro systems).

Eligible systems are entitled to a certain number of small-scale technology certificates (STCs) based on the amount of renewable electricity the system produces or displaces. These STCs can be created and sold to buyers (usually liable entities).

The SRES places a legal liability on liable entities (typically electricity retailers) to purchase an amount of small-scale technology certificates (STCs) each year.

Owners have two options for gaining a financial benefit for their STCs:

  • Assigning the right to create STCs to a STC Agent, in exchange for a discount or delayed cash payment, or
  • Selling the certificates themselves, either through the open STC market (pricing subject to market forces) or through the STC Clearing House (fixed price of $40 – excl GST).

Visit – Small Generation Units Owners Guide for more information if required.

In reality at present, due to the high popularity of grid connected solar power systems in particular, the available supply for STCs is far in excess of the demand for STCs from liable entities. For this reason few STC’s are being purchased through the STC clearing house with most STC’s being sold on the open market for substantially less than $40. Dingo Solar sets a weekly price that it will pay for STC’s each week. The price that a customer is paid for their STCs is locked in by Dingo Solar at the time of order confirmation (i.e. on payment of deposit).

Please note small-scale technology certificates are not a government rebate or refund. The trade and transfer of renewable energy certificates is regulated by the Office of the Renewable Energy Regulator (ORER) see www.orer.gov.au for further information.

 

New Solar Credits Scheme

The Federal Government’s new Solar Credits Scheme is open to all Australian residents. This new incentive utilises the Small-scale Technology Certificates (STCs) system but includes a 5x multiplier to the number of STC’s or Solar Credits for systems up to 1.5kW.

Importantly under the current Solar Credits Scheme:

  • Consumers and businesses alike are eligible under the Solar Credits Scheme.
  • incentives are also available for properties that are not primary residences like investment properties and holiday homes.

The main financial benefit under the Solar Credits Scheme is an increase in the number of STCs that a solar system produces. These Credits will assist with the upfront cost of installing solar power systems. Solar Credits will apply to new installations of renewable energy generators eligible under the scheme.

Following an announcement from the Minister for Climate Change and Energy Efficiency on May 5 2011, the number of additional credits will be based on the multiple as set out in the following table and location.

Year

2009-10

2010-11

2011-12

2012-13

From 2013

Multiplier 5 5 3 2 No multiplier (1)

PV systems with a capacity above 1.5 kW are also eligible for the multiplier at 1:5 up to 1.5kW and then the standard 1:1 rate of STCs creation beyond that .

The credits will only apply to the first small scale generation system installed at an address. Under the solar credits scheme, home owners can receive certificates for the lifetime generation of the system either upfront or over longer time periods of one, five or fifteen years. This is called the deeming period.

For more Information visit – http://www.orer.gov.au/sgu/solarcredits.html

Payment Methods

Interest free finance also available – ask us how