Renewable Energy Credits
In 2009, the Federal Government implemented the Solar Bonus Scheme, replacing the Solar Homes and Communities Program (2002). The objective of the new Solar Bonus scheme is to provide incentives and rewards for implementing sustainable energy devices into homes and workplaces. Instead of offering a standard $8,000 rebate, the Federal Government has now introduced Renewable Energy Certificates (RECs) for the installation of renewable products.
The easiest way to understand RECs is to think of them as being like share certificates. They are electronic, tradable commodities, each equal to 1 Megawatt hour of renewable energy generation, that may be traded for financial return. And, just like a share certificate, the value of a REC can move up and down.
In other words, you earn RECs for every unit of renewable energy you generate and can then sell them for whatever the market rate is at the time of sale.
The operation of RECs is coordinated by the Office of the Renewable Energy Regulator and governed by the Renewable Energy (Electricity) Act 2000 and the Renewable Energy (Electricity) Regulations 2001.
When you have a solar power system installed by Nu Energy, your system will attract a certain number of RECs. However, only a person who is registered with the Renewable Energy Regulator can actually receive RECs. That means you have two options:
- You can apply to be registered yourself; or
- You can assign those RECs to Nu Energy as we’re already registered with ORER so are able to receive them from you. That way, you can benefit from this rebate at the point of sale in the form of a discounted price on your system.
