ABOUT RENEWABLE ENERGY CERTIFICATES (RECES)
The Australian Government has developed a duo of schemes under its Renewable Energy Target (RET) initiative, namely the Large-scale Renewable Energy Target and Small-scale Renewable Energy Scheme. These schemes are administered through the Department of Climate Change and Energy Efficiency and create a financial incentive for investment in renewable energy sources through the creation and sale of online certificates. The certificates are created and traded through the REC Registry, an Internet-based registry managed by the Clean Energy Regulator. The number and type of certificates allocated to eligible renewable energy sources is based on the amount of electricity in megawatt hours (MWh) generated by a renewable energy power station, or small-scale solar panel system. These certificates are then purchased and surrendered under legal obligation by energy polluters (usually electricity retailers) that are required to buy these green credits to offset their carbon emissions.
SMALL SCALE TECHNOLOGY CERTIFICATE (STCs)
These certificates are assigned to PV systems up to 100kW in size for a period of 12 years post commissioning. One STC is equivalent to 1 MWh of electricity generated. The 11 year deeming period reduces by 1 year annually from the 1/1/2021. Solar Warehouse Australia clients are offered the opportunity to assign their systems allocated STCs to Solar Warehouse Australia in exchange for a significant up-front point of sale discount off the retail price of their PV system.
LARGE SCALE GENERATION CERTIFICATES (LGCs)
These certificates are assigned to PV systems of 100kW and larger. One LGC is equivalent to 1 MWh of eligible electricity generated. Unlike STCs where all certificates can be generated up-front, LGCs are generated on an ongoing basis following assessment of monthly, quarterly or annual electricity production data by the Clean Energy Regulator. LGCs can be claimed for the entire period of the Large-scale Renewable Energy Target scheme which currently ends in 2030.