Renewable Energy Certificates
Money back for every megawatt hour
Solar systems harness the energy of the Sun to do work that we usually require fossil fuels for. Installing a solar system, whether it be for hot water or electricity, reduces the use of non-renewable energy sources like coal-generated electricity and gas, to provide you with the same services.
People who invest in a solar system are rewarded for their contribution to the reduction of greenhouse gas emissions by being granted a certain number of Renewable Energy Certificates (RECs) depending on the power output or savings of their system. The RECs for a solar system can be created from the first day the system is fully functional.
Solar Hot Water RECs
The number of RECs for a solar hot water system is set for that particular system; calculated as the estimated energy savings in megawatt hours of electricity over a period of 10 years.
- For a complete list of Hills Solar Esteem systems and their REC values click here.
- The Stiebel Eltron 300Ee Heat Pump system is eligible for 30 RECs.
Photovoltaics RECs
In comparison, the number of RECs for a photovoltaic installation are calculated based on the following formula (assumes installation in South East Queensland / zone 3):
| Zone Rating x Power Output x 15 years |
| for example... |
| 1.382 x 1.02kW x 15 years = 21.14 |
A 1.02kW photovoltaic installation is eligible for 21 RECs.
The Mandatory Renewable Energy Target
The Australian Federal Government established the Renewable Energy Certificates (RECs) system in 2000 as a way of achieving their Mandatory Renewable Energy Target (MRET). A wide range of devices are eligible for RECs including solar hot water systems, solar power systems, wind turbines, hydro power plants, etc.
The aim of the MRET is to increase the production of renewable energy. Under the system, all electricity retailers and wholesale buyers have a legal liability to contribute towards the generation of additional renewable energy.
The Office of the Renewable Energy Regulator is the governing body which administers the RECs system. Proceeds from the sale of RECs is however not considered to be a government rebate.
Do RECs measure efficiency?
No. RECs are a measure of estimated peak power output, not efficiency. This scheme works well for renewable energy production, such as solar power, wind power, hydro power, etc. Unfortunately the RECs model has some flaws in regards to solar hot water systems.
The peak output for solar hot water systems - when they are able to produce the absolute most hot water - is in the middle of summer. Of course most people don't need lots and lots of steaming hot water on hot summers days, they need it in the middle of winter!
In comparison, the efficiency of a solar hot water system is its ability to produce hot water without the need to use a booster during cold, wet and windy days.
- Got RECs to trade? Get in touch and we'll make you an offer.
- Office guidelines for small PV systems (PDF)