Renewable Energy Certificates
Renewable Energy Certificates (RECs) are a form of "currency" that can be earned when you install renewable energy equipment.
Some renewable energy sources that can generate RECs are:
- Solar hot water
- Photovoltaics (grid connect)
- Photovoltaics (stand-alone power supply systems)
- Wind
- Hydro
One REC represents one megawatt hour (or 1000 kilowatt hours) of electricity generated from renewable energy.
What are the benefits of RECs?
When you install renewable energy equipment you may be able to earn some money from RECs.
Various companies or government bodies may be interested in buying your RECs or buying your right to create them. Some purchasers may offer cash for your RECs while others may offer discounts on products.
You should read all purchase agreements and contracts carefully before signing them to ensure you understand whether they contain any arrangement regarding any RECs that you may be entitled to.
It is quite legitimate for a purchase contract to include an agreement to surrender your RECs. However, you should ensure you have sufficient understanding to make an informed decision and that you are satisfied you are getting an appropriate monetary return for your RECs.
How are RECs earned?
Owners of eligible small renewable generation units installed on or after 1 April 2001 can earn RECs by taking steps to create and register any RECs. This is referred to as 'claiming' them.
However, if the owner does not wish to go through this process, they may transfer their right to "create" the RECs to another person, called an Agent. This must be done in writing. You should ensure that the Agent pays you a reasonable price for this right.
More Information
Further information about RECs can be found in the Frequently Asked Questions page on the Office of the Renewable Energy Regulator's website: http://www.orer.gov.au/recs/index.html
Contact Information
For more information on Renewable Energy Certificates, contact: The Office of the Renewable Energy Regulator on (02) 6274 2192
or
visit www.orer.gov.au
Last updated: 24 July 2008