Riddells Creek Sustainability

18 April 2008

Solar – Renewable Energy Certificates (RECs)

Filed under: Solar Panel Project — Russell @ 7:25 pm

From the BBE website:


15) What are Renewable Energy Certificates?
 

Renewable Energy Certificates –(RECs) are an electronic form of currency initiated by the Renewable Energy (Electricity) Act 2000, and overseen by the Office of the Renewable Energy Regulator. All electricity retailers and wholesale buyers have a legal liability to contribute towards the generation of additional renewable energy. They meet their legal obligation by acquiring RECs. When you install a solar system, you receive RECs which you then sign over to Beyond Building Energy. We can then sell them to agents or liable parties. The price of certificates varies because sellers and purchasers directly negotiate price and payment arrangements.

This is one of the ways that we have engineered our financial structure to pass on savings directly to the householder.

 

From one of our members:

I did some investigation of the RECs relating to solar power through the office of the renewable energy regulator (www.orer.gov.au) regarding the value of RECs that are we sign over to Beyond Building see http://www.orer.gov.au/publications/photovoltaic.html . They work out being about 17 recs for our area (zone 4) for a 1 kw system which are worth about $36 to $40 each – total of about $680 (Calc – 1 kw x 1.185 (zone factor) x 15 (deeming period – 15 years is the most favourable) = 17.775 – round down to 17 Recs) – I spoke to a person call Matt Power who was very helpful 0262741196 of the renewable energy regulator.

There is also a site that monitors the value of RECs on the open market http://www.afma.com.au/scripts/nc.dll?AFMAV6.196862:STANDARD:394747943:pc=L6C1S2S13 and here for prices http://www.afma.com.au/scripts/nc.dll?AFMAV6.196862:STANDARD:394747943:pc=L6C1S2S132 . You will see this is about $44 to $57 per REC. This is higher because it covers the costs of mobs like beyond Energy getting together large quantities of RECs, which they then trade to power companies like Origin Energy. No one wants to by small lots of RECs. There are businesses out there who act as brokers. RECs are also created from solar hot water systems and solar hot water heat pumps. Matt Power was saying there is a fair bit of unconscionable behaviour out there were people are not aware of the value of RECs and who sign them over to their hot water our solar PV service providers without looking to closely at their value. It is only a few dollars to the consumer, but for retailers they add up. There are about 50,000 new solar hot water systems being sold a year at the moment. Interesting stuff.

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