REC prices
For Green Energy Trading's current buy-back prices see our REC prices page.Talking Green Energy
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Accredited installer Accredited installerThe Clean Energy Council offers a certification for PV installers to ensure their systems meet industry best practice and Australian Standards. RECs are only able to be created for 15 years in advance when the system has been installed by a CEC accredited installer. Assignment formsThis is a legal document which must be kept for five years and presented to the Office of Renewable Energy Regulator (ORER) upon request. The assignment form needs to be completed and signed by the owner of a system allowing an agent to create their RECs for them; and states whether payment for the RECs is to be made to the owner, or to the installer in exchange for some benefit such as a discount at the point of sale. ORER has defined mandatory information which must be included as a part of this form.AuditsAudits are conducted by the Office of Renewable Energy Regulator (ORER). This can happen to any assignment form received and processed by Green Energy Trading. When an audit is conducted the owner of the system or installer may be required to present additional information, including a site map and/or photographs of the installation. For more information see our Audits page.Calculating RECsThere are different calculations for determining the number of RECs dependent upon the type of system that has been installed. The factors that determine the number of RECs the system is eligible for include: the total system capacity, or system type; postcode in which it was installed; and the deeming period which RECs are being claimed for. In order to calculate RECs visit our handy calculators page.Clean Energy CouncilThe Clean Energy Council (the former Australian Business Council for Sustainability or BCSE) is a not for profit association based in Melbourne. It has more than 300 member companies and represents the clean energy and energy efficiency industries. Its primary role is developing and advocating policy and promoting awareness of the industry through such things as conferences, events, newsletters etc.CO2-eCO2-e stands for carbon dioxide equivalent. The use of this term enables comparison of various greenhouse gases.Commercial heat pumpsCommercial heat pumps have a capacity of over 700 litres. Commercial heat pumps are eligible for RECs however the government has recently introduced an additional requirement whereby a statutory declaration will be required from the customer and the installer stating that the system is appropriate for the intended use.CPRS – Carbon Pollution Reduction SchemeThe Carbon Pollution Reduction scheme (CPRS) is an Australian economic policy instrument designed to limit and reduce the level of greenhouse gas emissions. Developed by the federal government, the CPRS is expected to come into effect in 2010.DecommissioningWhen creating VEECs, the ESC requires that the old system is decommissioned. This means that the in-efficient product is withdrawn from service either by destroying the system or recycling it. Evidence is required of decommissioning. See VEEC FAQ 16. What is required as evidence of decommissioning?Default wind resource availabilityWind resource availability is determined in terms of hours per year. The default wind availability resource can be claimed where the actual wind resource availability is unknown. The default wind availability resource is set at 2000 hours per year.Demand for RECsWhile supply can fluctuate, the demand for RECs is set at the level of the Renewable Energy Target, as graphed on our How RECs are priced page. Any companies in Australia making wholesale purchases of electricity are required to surrender an increasing number of Renewable Energy Certificates (RECs) to the Office of Renewable Energy Regulator (ORER) each year.Eligible partiesEligible parties for RECs are the generators of eligible renewable electricity. RECs may be created for each megawatt-hour by persons registered with the Office of Renewable Energy Regulator. Green Energy Trading is registered to create RECs so there is no need to register if RECs are being assigned to Green Energy Trading.Energy efficiencyEnergy Efficiency is defined as using less energy to achieve the same result. There are many ways that a household can increase their energy efficiency including installing insulation in the roof which will then require less heating and cooling to achieve a desired temperature.ESCThe Essential Services Commission (ESC) is the regulator of electricity, gas, water and sewerage; ports, grain handling and rail freight industries for Victoria. The ESC is the administer of the VEET and VRET schemes. Visit www.esc.vic.gov.au for more information.ETSEmissions Trading Scheme (ETS) is a tool which provides economic incentives to limit and reduce greenhouse gases. The government sets a cap on the amount of emissions allowed within the marketplace and issues an equivalent number of permits. Entities that emit greenhouse gasses above a predetermined level are either required to surrender emissions permits or reduce their emissions.Green jobsThe definition of a green job is very broad; however, in most cases refers to a role that contributes to the lowering of our greenhouse gas emissions and making our society more sustainable. This includes jobs that reduce energy consumption, reduce carbon emissions, reduce our water usage, protect ecosystems and biodiversity, and minimize waste and pollution.GreenPowerGreen power is generated from renewable energy sources such as hydro and wind power which produce no greenhouse gas emissions. ‘GreenPower’ is a government accreditation which ensures that energy retails are investing on behalf of the customer who opts for green power.Gross feed-in tariffA gross feed-in tariff pays a rate for each kilowatt hour produced by a grid connected system such as solar PV or a wind turbine. Currently the ACT is the only state to offer a gross feed-in tariff.Heat pumpsClassified as renewable energy under MRET (see MRET) a heat pump draws heat from the atmosphere and doesn’t rely on sunlight to operate. Heat pumps have been an extremely large creator of RECs due to their practicality and cost effectiveness.Independent agentGreen Energy Trading are an independent agent. This means we create RECs for all models and are unbiased towards any manufacturer.Liable parties (buyers of RECs)Under the RET legislations wholesale purchasers of electricity are defined as liable parties and are required to contribute towards the generation of renewable energy – through the annual surrender of RECs.MRETMRET, or the Mandatory Renewable Energy Target, represents Australia’s target for the amount of renewable energy production as graphed on our How RECs are priced page. MRET is implemented by the Renewable Energy (Electricity) Act 2000 and the Renewable Energy (Electricity) Regulations 2001, and overseen by ORER.Net feed-in-tariffA net feed-in tariff (or export metering) pays a rate only for surplus kilowatt hours fed into the grid by a grid connected system such as solar PV or a wind turbine.ORERThe Office of Renewable Energy Regulator (ORER) was established in 2001 to oversee the implementation of MRET. ORER is the government body which administers the Renewable Energy (Electricity) Act 2000 (the Act), Renewable Energy (Electricity) (Charge) Act 2000 and the Renewable Energy (Electricity) Regulations 2001.PhotovoltaicsMore commonly known as Solar PV, photovoltaic panels capture the sun’s rays and converts this directly into solar electricity. See our Solar PV page. Pre-assignment formA pre-assignment form can be used when you have made a sale and wish to lock in a REC price for that customer. The pre-assignment form requests some of the information that is given on the assignment form following the installation such as the system owners details, installation address, type and size of system, number of RECs and signature of the Green Energy Trading client (rather than the system owner). Once this form is received we can lock in the current day’s buy-back price for up to 12 weeks. Price GuaranteeThe Green Energy Trading Price Guarantee allows you to lock in prices for up to 12 weeks. The price guarantee is a contractual agreement between you and Green Energy Trading. See our price guarantee page and price guarantee FAQs for more information. Renewable EnergyEnergy generated from renewable resources, or resources which are naturally replenished (i.e. sunlight, wind, waves, rain) are known as renewable energy.Renewable Energy Certificate (REC)RECs or Renewable Energy Certificates represent one mega-watt hour of renewable energy generated under the MRET scheme. Registered parties create the RECs using the online REC registry; this may be on behalf of owners of eligible systems. Energy retailers in Australia have a legal obligation to support renewable energy and must surrender a set yearly volume of RECs to demonstrate this, or alternatively pay a penalty price to the government. This gives RECs a monetary value and RECs are traded amongst market participants. REC agentA REC agent purchases the rights to create RECs from installers, suppliers and customers of renewable energy products such as solar PV, solar water heating, heat pumps, small wind and hydro. They then register and create the RECs with the Office of Renewable Energy Regulator and sell them into the wholesale market. REC pricesREC prices fluctuate on the wholesale market on a daily basis. Like other commodities the price is largely determined by supply and demand for RECs; see how RECs are priced. Green Energy Trading’s buy-back price is generally slightly lower than the wholesale REC price to allow for processing and administration costs. To find out Green Energy Trading's current buy-back price for RECs visit our REC prices page.REC registryThe REC registry is an internet based system which facilitates the creation, registration and transfer of Renewable Energy Certificates (RECs).Spot priceThe spot price refers to a sale made in the wholesale market for delivery within one week. In the wholesale market the minimum parcel size for trading is 5,000 RECs.Solar CreditsUnder solar credits owners of PV systems installed at an eligible premises who have not received approval or pre-approval for Solar Homes and Communities Plan (SCHP), National Solar Schools Program (NSSP), Renewable Remote Power Generation Program (RRPGP) or Photovoltaic Rebate Program (PVRP) will be able to create five times the number of RECs for the first 1.5kw of the system’s capacity. For more information see our Solar Credits page.Solar ZonesThe number of RECs that an eligible system will be able to create depends partly on the Solar Zone in which it has been installed. Australia has been divided into four Solar Zones and these vary slightly dependent upon whether a PV system, or solar water heater/heat pump has been installed. See our Solar Zones page for more information.SRESThe government has announced proposed amendments to the RET scheme splitting the renewable energy target into two parts. The SRES is the Small-scale renewable energy scheme and includes RECs created from solar PV, solar water heating, small wind and hydro.VEECVictorian Energy Efficiency Certificates (VEECs) are available for a number of activities a household could undertake to become more energy efficient. For more information see our VEECs page.Voluntary surrenderOnce RECs are registered they can be voluntarily surrendered. A reason for this may be to encourage additional generation of renewable energy. |