Renewable Energy Certificates (RECs)

Put simply RECs or Renewable Energy Certificates are like credits.

The Federal Government instigated this system of credits to increase the amount of electricity generated by renewable sources. Each REC credit represents a saving of one megawatt of electricity generated from fossil fuels over 10 years. A REC for a solar or heat pump water heater is the equivalent of 1 MWh of renewable energy produced, or non-renewable energy displaced over ten years.

Much like the value of a share, the value of a REC is market sensitive and subject to change.

The owner of a solar or heat pump water heater may be eligible to generate RECs if it displaces fossil fuel electricity to heat water. Once generated, RECs can be traded, purchased or sold, thereby making the purchase of a solar or heat pump hot water system more affordable for the homeowner.

The amount of RECs awarded to a hot water system is based on the efficiency of the system and the climate zone you live in. Put simply, the more efficient the system the higher the number of RECs awarded.

When you use the Rebate-A-Meter to calculate your rebate, it will automatically work out how many RECs you are entitled to based on the information you provide.

RECs Eligibility

To be eligible to claim the Renewable Energy Certificates (RECs) rebate for a new solar or heat pump hot water system the criteria below must be met. It is worth noting that both first time installations and replacements in existing homes can be eligible.

  • The person claiming must be the owner of the system at the time of install
  • The solar hot or heat pump hot water system being purchased must be a complete model, which is
    listed in the Register of Solar Hot Water Heaters found on the ORER website below
  • The rebate must be claimed within 12 months of installation completion

For comprehensive information on Renewable Energy Certificates and eligibility criteria, visit the website of "The Office of Renewable Energy Regulator" Click here .