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Glossary

Accredited installer

The Clean Energy Council offers a certification for PV installers and designers to ensure their systems meet industry best practice and Australian Standards.  Certificates are only able to be created for 15 years in advance when the system has been installed by a CEC accredited installer.

Assignment Forms

This is a legal document which must be kept for five years and presented to the Clean Energy Regulator upon request.  The Assignment Form needs to be completed and signed by the owner of a system allowing an agent, such as Green Energy Trading, 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.  The Clean Energy Regulator has defined mandatory information which must be included as a part of this form.

Audits

Audits are conducted by the Clean Energy Regulator and the Essenial Services Commission (ESC).   These 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.

Calculating Certificates

There are different calculations for determining the number of certificates dependent upon the type of system that has been installed.  The factors that determine the number of certificates for which the system is eligible include: the total system capacity, or system type; postcode in which it was installed; and the deeming period being claimed.  In order to calculate certificates visit our handy calculators page.

Carbon Pricing Scheme

The Carbon Pricing Scheme is an Australian economic policy instrument designed to limit and reduce the level of greenhouse gas emissions by taxing the top 500 polluters.  The scheme is anticipated to come into effect in 2012 and will progress to a Carbon Emmissions Trading Scheme in 2015.

Clean Energy Council

The Clean Energy Council (formerly the 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 conferences, events, newsletters etc.

CO2-e

CO2-e stands for carbon dioxide equivalent.  The use of this term enables comparison of various greenhouse gases.

Commercial heat pumps

Commercial 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.

Decommissioning

When creating VEECs, the ESC requires that the old system is decommissioned.  This means that the inefficient 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 availability

Wind 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 STCs and LGCs

While supply can fluctuate, the demand for certificates is set at the level of the Renewable Energy Target.   Any companies in Australia making wholesale purchases of electricity are required to surrender an increasing number of Renewable Energy Certificates (RECs) to the Clean Energy Regulator each year.

Eligible parties

Eligible parties for RECs are the generators of eligible renewable electricity.  RECs may be created for each megawatt-hour by persons registered with the Clean 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 efficiency

Energy 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.

Essential Services Commission (ESC)

The 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 administrator of the VEET and VRET schemes.  Visit www.esc.vic.gov.au for more information.

Emmissions Trading Scheme

Emissions 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 gases above a predetermined level are either required to surrender emissions permits or reduce their emissions.

Green jobs

The definition of a green job is very broad, however in most cases this 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.

GreenPower

Green 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 tariff

A 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.

Heat pumps

Classified as renewable energy under MRET (see MRET) a heat pump draws heat from the atmosphere and does not rely on sunlight to operate.  Heat pumps have been an extremely large creator of RECs due to their practicality and cost effectiveness.

Independent agent

Green Energy Trading is an independent agent.  This means we create RECs for all models and are unbiased towards any manufacturer.

Liable parties (buyers of certificates)

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.

Net feed-in-tariff

A 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.

Clean Energy Regulator

The Clean Energy Regulator administers the Renewable Energy Target, including the Large-scale Renewable Energy Target and the Small-scale Renewable Energy Scheme.

Photovoltaics (PVs)

More commonly known as Solar PV, photovoltaic panels capture the sun’s rays and convert thiesedirectly into solar electricity.

Renewable Energy

Energy 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.
  • Registered parties create RECs (which include STCs and LGCs) 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 agent

A 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 Clean Energy Regulator and sell them into the wholesale market.

REC registry

The REC registry is an internet based system which facilitates the creation, registration and transfer of Renewable Energy Certificates (RECs).

Spot price

The 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 Credits

Under 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 Zones

The 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.

SRES

The 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.

VEEC

Victorian 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 surrender

Once RECs are registered they can be voluntarily surrendered.  A reason for this may be to encourage additional generation of renewable energy.