Since the introduction of the Renewable Energy (Electricity) Act 2000,Energy retailers have been forced to meet targets to obtain a portion of their energy supplies from renewable sources. If they are unable to meet these targets they can offset an equivalent amount of energy by purchasing RECs,which are created by the installation of appliances such as solar water heaters or solar electric panels.
For solar systems,one REC represents the equivalent of one megawatt hour of renewable energy generation. To be eligible,solar manufacturers must submit their products for testing in Government approved laboratories. The more efficient they are,the more RECs they are awarded. Because of their efficiency,Chromagen solar systems generate some of the highest RECs available.
RECs are bought and sold on the open market and Chromagen (our supplier) is a registered REC agent who will buy your REC credits back with the least of fuss. REC prices consequently fluctuate up and down according to the economic forces of supply and demand.
Owners of solar systems can choose to trade RECs themselves through the internet-based REC Registry. However,most people choose to assign the RECs back to the manufacturer in return for a point-of-sale discount.
All purchasers of a registered solar hot water system are entitled to receive the RECs discount upon installation of the system. This discount usually amounts to a value well over $1,000.
Example:
A Chromagen solar hot water system with a 300L tank and a single panel receives 29 RECs points. If RECs point were being traded at $45.00 each the value of the RECs discount would equal $1,305.
29 RECs points @ $45 each = $1305 discount at point of sale.
The individual value of RECs points will vary depending on current market forces.
For full details visit: http://www.orer.gov.au/swh/index.html |
