Renewable Energy Certificates (RECs)
In 2001 the Australian Government introduced the Mandatory Renewable Energy Target scheme designed to increase the uptake of renewable energy in Australia's electricity supply. As part of this, Renewable Energy Certificates are issued as a financial incentive for the installation of solar hot water heaters or systems to generate renewable energy.
About RECs
From 1 January 2011 the Renewable Energy Target, which guarantees 20 per cent of Australia’s energy in 2020 will come from renewable sources, includes the Small-scale Renewable Energy Scheme (SRES). The SRES covers small-scale technologies such as solar panels. It provides a fixed price of $40 per REC, providing direct support for households that take action to reduce emissions. One REC is equivalent to a megawatt hour per year (MWh/yr) of electricity displaced by an eligible system that uses 'clean' renewable energy in place of electricity. Each system is eligible for a different number of RECs, which relates to the systems' capacity, efficiency and installation location.
Australia is divided into four solar zones, as indicated below. Installations in high solar radiation areas like Zone 2 typically receive more RECs than those located in Zone 4, where solar radiation levels are less.
Note: Contours shown are annual mean daily solar radiation on a horizontal surface (MJ/m²).
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1 kW
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1.5 kW
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2 kW
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2.5 kW
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3 kW
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4 kW
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5 kW
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10 kW
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Zone 1
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121 RECs
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182 RECs
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194 RECs
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206 RECs
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218 RECs
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243 RECs
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267 RECs
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389 RECs
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Zone 2
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115 RECs
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172 RECs
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184 RECs
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195 RECs
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207 RECs
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230 RECs
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253 RECs
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368 RECs
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Zone 3
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103 RECs
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155 RECs
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165 RECs
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176 RECs
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186 RECs
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207 RECs
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228 RECs
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331 RECs
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Zone 4
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88 RECs
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133 RECs
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142 RECs
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151 RECs
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159 RECs
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177 RECs
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195 RECs
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284 RECs
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You can view more information on eligibility on our RECs eligibility page.
Changes to REC's
The Solar Credit program offers an upfront rebate for a solar system. For example, the rebate for a 5 KW solar PV system in Ballarat is $7,760. However, after the 1st July 2011 the rebate will be reduced meaning that solar PV system costs will increase by approximately $1,000. Thus it is recommended to sign a solar system quote prior to the reduction on 1 July 2011. For more information go to: www.dpi.vic.gov.au/feedintariff / www.climatechange.gov.au, or download the Government Fact sheet: Support for small-scale renewable energy systems.
More information
Please get in touch if you have any questions surrounding RECs by calling 1300 170 668, or by filling out the enquiries form in our contact area.
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