Solar hot water systems and Renewable Energy Certificates
What are Renewable Energy Certificates?
A Renewable Energy Certificate (REC) is obtained for every 1 megawatt-hour (1000 kilowatt-hours) of electricity produced by an approved renewable generator. Using a solar hot water system as renewable source means that it displaces electricity produced by a non renewable generator and hence it can be seen that a solar hot water systems creates RECs. Owners of eligible solar hot water systems can sell their RECs to partially offset their 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 off people who have installed solar hot water systems, which in turn helps us meet our annual target, as mandated by the Federal Government.
Who is eligible for Renewable Energy Certificates?
To be eligible for this scheme, solar hot water systems are required to be certified against Australian Standard AS2712:2002 for design and manufacture.
When a customer installs a solar hot water 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 tank size of the system installed. Based on our calculations, a standard solar system will pay for itself in around five years. That means free hot water for the life of the system, which is usually 15 to 20 years.
Installing a solar hot water system is also an environmental plus. By converting to solar hot water 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 Renewable Energy Certificates?
Once you have decided to go to solar, all you need do is see a solar hot water 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 REC's 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 Renewable Energy Certificates
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. For the current RECS price phone Power and Water on 1800 245 092.
Application form– complete this form once your new system is installed and bring it in to a Power and Water Customer Service Centre
For more information, visit the Office of the Renewable Energy Regulator or contact Power and Water.