Initiated by the Renewable Energy (Electricity) Act 2000; RECs, otherwise known as Renewable Energy Certificates, were available when qualifying solar panels or other renewable energy/power systems are purchased.

 

The RECs system was originally implemented to encourage an additional 9,500 Gwh of renewable energy generation per year by 2010 as part of the renewable energy target. Renewable Energy Certificates play a large role in helping Australia install enough solar to meet its renewable energy targets by 2020 via the new Solar Credits Program

 

At the beginning of 2011 the RECs system has been split into two streams with the revision of the Renewable Energy Targets, Large-scale Technology Certificates (LTCs) and Small-scale Technology Certificates (STCs) in order to provide different levels of encouragement for large scale renewable energy projects and small scale installations such as domestic solar

 

One STC is equivalent to one megawatt hour of electricity generation. An STC can be traded for cash and the value of these certificates fluctuates according to market conditions. Basically, an STC is a form of renewable energy currency. By taking advantage of STC's, a substantial amount of money can be saved at the point of sale when purchasing solar power equipment!

In July 2009 the Australian government announced the new solar incentives program, The Solar Credits Scheme, a program based on the REC system, now STCs, but with a certificate multiplier incentive.

 

The Australian government hopes to achieve a goal of 45,000 gigawatt-hours (GWh) of electricity via renewable means such as solar, wind and geothermal by the year 2020.

 

Under the Solar Credits Scheme, people purchasing solar have the RECs/STCs on the first 1.5kWs of their system multiplied by 3. This in turn means a significant help in reducing the up-front cost of an eligible solar system. There are no means tests and the scheme is open to individuals and businesses alike.

 

In order to stimulate early take up but also to take into account the falling cost of components, the multiplier has been set up to reduce over time.

• 2012-13 - 2x
• 2013-14 - 1x
• 2014 onwards, no multiplier

 

 

Like all government policies, these are likely to change overnight

As always, there is never a better time to go solar than right now!