Renewable Energy Certificates – The way they Promote Energy Efficiency

Virtually any specific or see this page even business which purchases and installs an energy from the sun system to produce solar electricity can not only reduced electricity bills, but also reduce their cost of ownership with the benefits of unlimited energy certificates (REC) if they reside in countries like Australia, which implements the Mandatory Renewable Energy Scheme. In essence, these certificates are as good as cash payments as they reduce the price of owning a solar energy system and directly promote energy efficiency with the use of renewable energy sources.

One REC is awarded for each one megawatt hour of electrical power generated through solar panel systems. These certificates are usually given to the organisation doing the solar energy installation of yours and they also sell them to energy companies as part of their obligations under mandatory renewable energy targets.

Various solar energy systems generate varying amounts of REC in accordance with each one’s capacity as well as the place. In Australia, you’ll find 4 distinct zones for both solar energy PV panelsand solar water heating units signifying the 4 different levels of the sun each zone receives. Deeming periods of 1, 5, and fifteen years may additionally be applied to system owners eligible for RECs. The deemed basis would depend upon the setting up date of the solar energy systems.

The way the REC System Works

The Australian federal goals locating a minimum of twenty % of energy usage from renewable sources by 2020, in compliance to an international mandate that involves other nations working towards the reduction of green house gas emissions. Energy companies are attempting to meet the target, being necessary to surrender RECs into the respective holding accounts of theirs in the end of every calendar year. Failing to reach the target leaves them liable to pay a decent a lot higher than the REC value.

For individuals and businesses alike, RECs may be traded for cash. The values of RECs fluctuate, just like any other commodity, based on market conditions. Solar power system owners may claim the inexhaustible energy certificates themselves or perhaps assign the right to get the REC importance to an agent in order to save some time and stay away from the inconvenience of going through the required procedure.


Naturally, the program hasn’t received all beneficial feedback. There was claims that the REC device doesn’t actually cause the sizable decrease of greenhouse gas emissions. When an individual or a business owner sets up energy from the sun systems to produce solar energy, and then promote their unlimited energy certificates to energy companies, he forfeits the right for getting the inexhaustible energy to the electrical power companies whose goal is to meet the environmental obligations of theirs.

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