What are Renewable Energy Certificates (RECS)?

In 2001, the Australian Government introduced the Mandatory Renewable Energy Target (MRET) in an effort to promote the use of renewable energy sources as a means of reducing greenhouse gas emissions. The main aim of the MRET was to achieve additional 9,500 gigawatt hours (GWh) of renewable energy per year by 2010 in an effort to alleviate our reliance on other energy sources. This legislation has now been superceded by the Renewable Energy target (RET). The expanded Renewable Energy Target (RET) scheme has been established to encourage additional generation of electricity from renewable energy sources to meet the Government’s commitment to achieving a 20% share of renewables in Australia’s electricity supply in 2020 - 45,000 gigawatt hours of renewable energy.

RECS are assigned with the purchase and installation of renewable energy systems such as a solar hot water system or small generation unit (SGU). One REC is equivalent to one megawatt hour of electricity generated from renewable energy and thus may vary with the type of unit installed based upon the power output or savings of the particular system. The Renewable Energy (Electricity) Act 2000 allows for such RECS to be exchanged for cash at their value according to market conditions. Envirecs provides the services allowing for such an exchange…   

Who is eligible to claim Renewable Energy Certificates?

Solar Hot Water Systems

Owners of approved solar water heaters are entitled to RECS if:  

1.    The system is installed in a new residence 

2.    The system is the first such installation of a water heater in an already existing building 

3.    The system is a substitute an existing electric hot water system 

4.    The system is replacing a current electric boosted solar hot water system with a more efficient model. 

Small Generation Units (SGUs) 

Owners of small generation unit installations are entitled to RECs with the installation of any of the following units: 

1.    Photovoltaic systems 

2.    Wind systems 

3.    Small hydro electric systems 

Owners of SGUs are now entitled to claim solar credits under the Renewable Energy Target (RET) solar credit scheme. Solar credits will 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 REC creation. The credits will only apply to the first small-scale generation system installed at an address during the period 9 June 2009 to 30 June 2015. The additional Solar Credits would only apply in the first time period that certificates are created for a system.