LRET and SRES
There is much confusion regarding LRET and the SRES and we recommend that everyone who is interested go to the Office of Renewable Energy Regulator’s website
www.orer.gov.au where the details of all aspects of the schemes are available.
Information about the Large Scale Renewable Energy target (LRET) and Small Scale Renewable Energy SchemE (SRES)
You should also feel free to ring one of our offices if you are seeking further guidance.
In most cases householders and businesses are interested in STC’s and their value or trading potential.
At Green Solar Solutions we make three standard recommendations
1. A Point of Sale Discount
Renewable Energy Certificates (RECs)are an electronic form of currency initiated by the Renewable Energy (Electricity) Act 2000. RECs are issued to consumers who generate certain forms of clean renewable energy; They are a traded in a way similar to shares with their value subject to change based on market conditions.
Small Generation Units (SGUs) that are eligible to create STCs include:
· Small solar (photovoltaic) systems
· Small solar (hot water) systems
· Small wind turbines
· Small hydro systems
What does this mean to you?
When you purchase a qualifying SGU such as a solar hot water system or solar panels you will have the opportunity to create and sell/transfer RECs for a financial benefit.
You have the following options;
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A point of sale discount
Most of our clients elect to receive their benefit as a point of sale discount. STCs are influenced by market forces and we have no control over their value. Hence, the point of sales discount will also fluctuate with the market value of STCs. STCs can be claimed after the installation is complete, the STCs price will be adjusted on your invoice on the installation date.
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Sell RECs on an open market as an individual trader to receive cash
More details are available on the Office of Renewable Energy Regulator (ORER) website. To create and trade STCs you will need to create an account in the REC Registry.
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Do not trade or cash in your STCs
You might choose to do this if you feel strongly about encouraging additional generation of electricity from renewable sources. When you sell your STCs it effectively gives another party the right to use non-renewable energy, by keeping them you are not allowing that to happen.
How many RECs do I get?
The number of STCs you receive is dependent on the type of system you purchase and the location of your property. Australia is divided into Solar Zones. Zone 1 receives the highest degree of solar radiation and in turn you will receive more STCs in this Zone compared to the others. Zone 4 receives the least amount of solar radiation.
