"Quality Solar Power Systems"

Renewable Energy Credits (RECs)


What is a REC?


RECs are created under the Australian Federal Governments Renewable Energy Target legislation.  Each REC represents the equivalent of one megawatt hour (MWh) of generated electricity from an accredited renewable energy source per year.

Owners of photovoltaic systems can create RECs themselves through the internet-based REC Registry (www.rec-registry.gov.au), but most owners find it more convenient to assign their right to create RECs to an Agent in return for the financial benefit derived from the REC.


What creates RECS?


RECs are created by your photovoltaic system fulfilling certain criteria to be eligible, such as being fully installed at your premises.  Solar systems installed before 6 October 2007 can also be eligible but have a few other requirements to meet.

Creating RECs

RECs can be created for 1-year periods, 5-year periods or 15-year periods.  If a 15-year deeming period is chosen, RECs can only be created once and the system can never create RECs again.  In addition, the system must have been designed and installed by a person accredited for stand-alone and grid-connected power systems under the BCSE accreditation scheme or the Clean Energy Council accreditation scheme.


Solar Credits 

Solar Credits is a mechanism under the expanded Renewable Energy Target Scheme (RET), which multiplies the number of RECs able to be created for eligible installations of Small Generation Units (SGUs).  There is no means testing for Solar Credits under the legislation.  Solar credits will apply to the first 1.5 kilowatts (kW) of capacity installed.  Generation from capacity above 1.5 kW will still be eligible for the standard 1:1 rate of REC creation.

Eligibility requirements are as follows: 

  • Small generation unit in respect of which the certificates are created was installed at eligible premises between 9 June 2009 and 30 June 2013
  • At the time the small generation unit was installed at the eligible premises, there is no pre-approval or funding agreement in force in respect of the unit under the Solar Homes and Communities Plan (SHCP), the Renewable Remote Power Generation (RRPGP), or the National Solar Schools Program (NSSP) and no financial assistance has been provided in respect of the unit under the SHCP, the RRPGP or the NSSP
  • At the time the small generation unit is installed at the eligible premises, financial assistance under the SHCP, the Photovoltaic Rebate Programme (PVRP), the RRPGP or the NSSP has not been approved or provided in respect of any other small generation unit at the eligible premises
  • Small generation unit is a new and complete unit.  A system is a complete unit if:
    SGU is capable of generating electricity in a form that is usable at the eligible premises where it is installed without the need for an additional part or parts to be added to or incorporated into the unit.
    SGU is wired directly to the eligible premises where the unit is installed so that its output is capable of being metered at the premises or the unit includes a meter that is dedicated to measuring the electricity output of the unit.
    At the time the small generation unit is installed at eligible premises, certificates have not been multiplied in respect of any small generation unit at the premises and:
    On one occasion only, irrespective of whether the certificates are created for a 1-year, 5-year or 15-year period; and
    Only if the certificates relate to the first 1.5 kW of the rated power output of the unit


Definition of Eligible Premises for Solar Credits  

The Regulations define eligible premises to include:

  • A house (including the land on which the house is located and any outbuildings on the land)
  • A townhouse
  • A residential apartment
  • A shop (including the land on which the shop is located and any outbuildings on the land)
    Refer to the Regulations if the premises fall outside the above classes of premises.