The Renewable Energy Target

27 Aug 2009

Over the last week since the passing of the Renewable Energy Target (RET) we have been receiving a number of calls about what all of this means. Hopefully we can help to shed some light on the issue and let you know that you’re not the only one left wondering how the five times multiplier will be calculated and requirements for creating the additional RECs.

At this stage we do know that the five times multiplier will apply for installations after 9 June that did not receive a rebate, or pre-approval for a rebate, under the Solar Homes and Communities Plan.

Right now the Department of Climate Change is busy working on the finer details of the scheme and how it will operate. This includes how rounding will be applied to the calculation, if receipt of any other rebates will mean ineligibility, as well as any additional requirements. This should be released within the next week or two for comments.

We expect it to take some time again for the Office of Renewable Energy Regulator (ORER) to establish the required systems enabling us to create Solar Credits.  We hope that this will be by end of September. So for now Green Energy Trading is still only able to create single RECs, however for any system that is eligible for Solar Credits we will be able to go back once the required systems are in place and create the additional RECs. 

Some changes have also been discussed around the treatment of commercial heat pump systems. A statutory declaration from the customer and the installer may be required stating that the system is appropriate for the intended use.

The new RET scheme also consolidates the state based renewables schemes, specifically the Victorian Renewable Energy Target (VRET). We expect that the VRET will continue to the end of 2009, with VRECs still able to be created until the end of this year.

Green Energy Trading will keep you updated as soon as these details come to hand. Stay tuned to the blog for further info.

We invite you to leave your comments below.