Renewable Energy Certificates (RECs)

 

Dingo Solar is a registered agent for renewable energy certificates (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 RECs to us.  This is as simple as signing a form.  We then sell the RECs, 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.

 

 

RECs (Renewable Energy Certifcates)

Federal Government Mandatory Renewable Energy Target

The aim of the Federal Government’s renewable energy target 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.

More information about the Mandatory Renewable Energy Target

 

Renewable Energy Certificates

Renewable energy certificates (RECs) can be created when:

• New solar water heaters are installed
• Renewable energy is produced by small generation units (ie Grid Connected Solar Power Systems) or power stations

To be eligible for renewable energy certificates, solar water heaters and renewable energy generators must comply with certain conditions.  For further information refer to the attached brochure.

 

Renewable energy certificates can be sold to agents or liable parties. The price of certificates varies on an hourly and daily  basis because sellers and purchasers directly negotiate price and payment arrangements. Renewable energy 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 has replaced the $8,000 government rebate for Solar Power Systems called the Solar Homes and Communities Program (SHCP)  which was suspended on 9 June 2009.  The Solar Credits Scheme is open to all Australian residents without the need for a previously required means test. This new incentive utilises the existing Renewable Energy Certificate (REC's) system but includes a 5x multiplier to the number of REC's or Solar Credits for systems up to 1.5kW.

If you were not previously eligible under the old $8,000 rebate scheme, you may now be eligible for incentives under this new scheme.  

There are several major differences between the old $8,000 rebate and the current Solar Credits Scheme.

• While the old rebate had a $100,000 means test for the household, the Solar Credits scheme makes all income levels eligible for incentives.
• Consumers and businesses alike are now 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 Renewable Energy Certificates (RECs) that a solar system produces. In comparison to the $8,000 rebate scheme, a solar system installed under the Solar Credits Scheme can receive up to $5000 off the cost of a solar power system. 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.

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	2013-14	2014-15	From 2015
Multiplier	5	5	5	4	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 RECs 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.climatechange.gov.au/renewabletarget/index.html