What are Renewable Energy Certificates (RECs)?
A REC is obtained for every 1 megawatt-hour (1000 kilowatt-hours) of electricity produced by an approved renewable generator. Using a solar hot water or a photovoltaic (PV) system as a renewable source means that it displaces the consumption of electricity that would have been produced by a non renewable source generator. Owners of eligible solar systems can sell their RECs to partially offset the cost of installing this renewable energy technology.
Why is this scheme available?
Under the Renewable Electricity Act the government has mandated that by 2010 an additional 9,500 gigawatt-hours of electricity must come from renewable energy sources. For the Northern Territory this means that the Power and Water Corporation requires an additional 61,500 megawatt-hours (or 61,500 RECs) of renewable energy sources by the end of 2010 to comply.
Power and Water will purchase these RECs from people who have installed eligible renewable generators, which in turn helps us meet our annual Mandatory Renewable Energy Target (MRET), set by the Federal Government.
Before selling your RECS
Owners of eligible small generation units have the option to claim RECs themselves by completing the appropriate application form (hot water system or PV system) or assign their right to claim RECs to an agent. Power and Water recommends you contact several companies who trade in RECs before agreeing to a price. Please contact customer services for further information on Power and Water's current price for RECs.
Who is eligible for RECs?
To be eligible for this scheme, solar generators are required to be certified against the Australian Standard for design and manufacture.
When a customer installs a solar system they may be able to trade the associated RECs with Power and Water. The amount of RECs will depend upon the brand/type and size of the system installed.
Installing a solar system is also an environmental plus. By converting to solar you are helping to reduce greenhouse gas emissions by about three tonnes per year. That is the equivalent to taking a small car off the road for the same period.
How do I assign the RECs?
Once you have decided to go to solar, all you need do is see a solar system supplier and tell them you are assigning your RECs to Power and Water. The supplier will then give you the information you need about the system you are buying and the number of RECs it will be eligible for. Power and Water requires customers to attach a copy of the installation report to their application.
Power and Water aims to process applications within 21 days. Some delays may be caused due to Office of Renewable Energy Regulator (ORER) requesting a site audit or a query on model and installation type.
Claims must be made within 12 months of your purchase.
The price of RECs
The price for RECs offered by Power and Water may fluctuate. Power and Water takes no responsibility for loss arising from the market variance in price offered for RECs. Please contact customer services for further information on Power and Water's current price for RECs.
Complete the REC Buyback Scheme (hot water systems) or REC Buyback Scheme (PV systems) form once your new system is installed and bring it in to any Power and Water customer service centre (retail outlet).
For more information, refer to the REC Buyback Scheme fact sheet, visit the Office of the Renewable Energy Regulator.