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Renewable Energy Certificates (RECs)

Renewable energy systems don't contribute to greenhouse gas emissions. So as a reward for not using fossil fuels, when you install a renewable energy system you qualify for Renewable Energy Certificates that you can keep or sell to others.

Australia has been mapped by postcode for the available sunlight in each location, and Tasmania is Zone 4 with a Zone Rating of 1.185. One REC equals one Megawatt hour (MWh) of electricity generated from the renewable energy system.

Renewable energy systems include:

  • photovoltaic or solar systems
  • wind systems
  • solar water heaters
  • heat pumps

RECs have a dollar value and are traded in a similar fashion to the stockmarket. RECs can be paid to you by your system installer as a Point of Sale Discount or a monetary payment.

Example of how many RECs I can get for a photovoltaic installation.

The number of RECs created depends on the size and type of your PV installation and the geographical location.

You have 2 options for redeeming your renewable system RECs:

  • Creating RECs in blocks of 5 years for the life of the system
  • Creating RECs as 1 * 15 year block single transaction.

The single transaction is attractive to most people as it can be given as a discount to the total system cost by the retailer.

The calculations for a 1kW system as a single one-off transaction are as follows:

The number of RECs in Tasmania will be:

  • 15yrs  *  1kW  *  1.185 Zone Rating = 18 RECS

At a trading price of $43 (this amount will vary depending on the current trading price), the amount you can receive is $43 * 18 = $774

With a 2kW system you will create 36 RECs at a possible redemption amount of $1,529. 

Example of how many RECs I can get for a solar water heating or heat pump installation.

The water heating REC creation is a little different to the PV RECs. The amount of rebate is based on the size of a system (amount of water produced) and performance (its solar contribution).

The better performing systems, or the ones that make the most effective use of the sun's energy, attract a higher rebate.

  • The output of a water heater is deemed 10 years into the future and there is only ever one single REC block creation.

To be eligible for the Solar Hot Water Rebate, the hot water system must be eligible for at least 20 RECs. Retailers will advise you on the number of RECs assigned to a system.

For more information about RECs from the Office of the Renewable Energy Regulator website select the links below: