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Renewable Energy Certificates (RECs) Explained PDF Print E-mail
The Federal Government introduced the Renewable Energy Certificate (REC) system to incentivise an increase in the amount of electricity generated by renewable sources. Each REC credit represents a saving of one megawatt of electricity generated from fossil fuels over 10 years. A REC for a solar or heat pump water heater is the equivalent of 1 MWh of renewable energy produced, or non-renewable energy displaced over 10 years.

RECs can be traded on an open REC market, making its value sensitive and subject to change according to the forces of market demand and supply.

The owner of a Solar PV, Solar Hot Water or a Heat Pump Hot Water system may be eligible to generate RECs if it displaces fossil fuel electricity to heat water. Once generated, RECs can be traded, purchased or sold, thereby making the purchase of a solar or heat pump hot water system more affordable for the homeowner.

The quantity of RECs eligible to a owner of a Renewable Energy System is dependent on the climate zone applicable to the installation. In addition, the amount of RECs awarded to a Solar PV system is dependant on the kW size of the system installed. In respect to a Solar or Heat Pump Hot Water System, the amount of RECs awarded is based on the efficiency of the system. Put simply, the more efficient the system the higher the number of RECs awarded.

RECs Eligibility

To be eligible to claim the Renewable Energy Certificates (RECs) rebate for a new solar or heat pump hot water system the criteria below must be met. It is worth noting that both first time installs and replacements in existing homes can be eligible.

  1. The person claiming must be the owner of the system at the time of install
  2. The solar hot or heat pump hot water system being purchased must be a complete model, which is listed in the ‘Register of Solar Hot Water Heaters’ found on the Office of the Renewable Energy Regulator (ORER) website
  3. The rebate must be claimed within 12 months of installation completion

For comprehensive information on Renewable Energy Certificates and eligibility criteria, visit the website of ‘Office of the Renewable Energy Regulator (ORER)....