Browse Forums Eco Living 1 Jan 03, 2009 9:26 am I'm hoping someone can explain to me in simple terms how RECs work and if everyone with a solar hot water system qualifies for them...
I've read through the info that came with our HWS and also the government website and I'm no wiser... why can't these people write? So far I get that I'm in zone 4, which attracts the lowest rate (obviously due to less sun...) but that's about the only thing I'm clear on. Re: RECs - does anyone understand them? 2Jan 03, 2009 1:14 pm kek I'm hoping someone can explain to me in simple terms how RECs work and if everyone with a solar hot water system qualifies for them... I've read through the info that came with our HWS and also the government website and I'm no wiser... why can't these people write? So far I get that I'm in zone 4, which attracts the lowest rate (obviously due to less sun...) but that's about the only thing I'm clear on. RECS are earned when you install a renewable energy source. This can include private home owners or electrical utility companies. There are certain rules about what consitutes a renewable energy source and the minimum amount of energy that they can generate. Examples include solar HWS, solar cells, wind power, hydro and heat pump units. 1 REC is earned for every 1 MWhr that can be potentially generated by a renewable source. When you decide to install a solar HWS you will earn a number of RECS. RECs are recorded electronically rather than on a piece of paper. This contain details of the installation date, installer and unit. Home owners have two choices when they get RECs for installing a solar HWS. They can register to trade RECs and sell them to another registered trader. For convenience most people usually give permission to their installer to keep the RECs. In return they give you money (this is usually given as part of your quote). This effectively becomes a rebate for your installation (this is separate from an additional means-tested government rebate specifically given for solar HWS). I would expect that you get slightly less than market price for giving your RECS to the installer but it will save you the hassle of finding a buyer yourself. As noted above you need to be registered to trade this REC via their registry. It is usually companies that trade in RECs rather than individuals. When one surrenders a REC to the government you will get money for doing so and that REC no longer can be traded. This system provides a government incentive for others to invest in renewable energy sources. Energy companies can make additional money by installing green energy systems (and getting RECs) on top of selling the energy itself. The RECs value of a solar HWS is determined by its potential capacity to heat hot water and the climatic region you are in e.g. large/efficient units or sunny regions get more RECs for an installation. It predicts the amount of electricity or gas you don't need to use i.e. how much heating energy is offset by the unit if you were running it at maximum capacity. Re: RECs - does anyone understand them? 3Jan 03, 2009 4:08 pm Thanks Dymonite.... that makes a lot more sense now.
I just checked our contract, and it says that the price we were charged for our solar HWS reflects the REC rebate claimed by the builder. Darn! Re: RECs - does anyone understand them? 4Jan 03, 2009 5:35 pm It is also worth noting that RECs are effectively a certificate for the amount that your system will reduce CO2 emissions. This means that when you sell them, you have sold the environmental benefit of the system to someone else (who will then buy the RECs as a way of offsetting their own carbon footprint).
If you spent extra money on your system to reduce your own enviromental/carbon footprint, then you may want to think twice about selling your RECs, as you are selling the reduction to someone else and your environmental footprint remains the same and the amount you get for the RECs is likely to be less than the extra cost you paid. Re: RECs - does anyone understand them? 5Jan 03, 2009 8:36 pm archaeobabe It is also worth noting that RECs are effectively a certificate for the amount that your system will reduce CO2 emissions. This means that when you sell them, you have sold the environmental benefit of the system to someone else Hi, Are you sure you are not confusing RECS with Carbon offsets. They are different things. The first is concerned with energy from renewable sources. The latter is related to allowances for greenhouse emissions. Re: RECs - does anyone understand them? 6Jan 03, 2009 9:44 pm RECs are the Australian government's currency of renewable energy (one REC = 1 megawatt hour), buying them is a way of carbon offsetting. In order for there to be carbon offsets like RECs to buy, the 'environmental benefit' has to have come from somewhere. In this case, the expected renewable energy (equivalent) for the domestic hot water system is calculated and RECs are issued on this basis. The commodity being traded via the certificate is the renewable component of the energy (it may be simpler to think of this as being the reduction in carbon emissions). The environmental benefit of the system belongs to the eventual buyer of the RECs, while the owner of the actual system effectively has a standard system in terms of their personal greenhouse footprint. The environmental benefit still exists in a national or global sense, but the owner of the system has now not reduced their personal footprint.
I am poor at explaining things in a hurry and my clearly worded explanation is on my work computer, but this recent article covers the issues to some degree: http://www.ata.org.au/wp-content/uploads/105_recs.pdf It also covers what to do if your RECs are already sold and you want to buy the equivalent amount back! Re: RECs - does anyone understand them? 7Jan 03, 2009 10:46 pm archaeobabe It is also worth noting that RECs are effectively a certificate for the amount that your system will reduce CO2 emissions. This means that when you sell them, you have sold the environmental benefit of the system to someone else (who will then buy the RECs as a way of offsetting their own carbon footprint). Your statement makes a bit a more sense now that I have read that ATA article. However, i suggest that it won't be individual households that will stimulate the market. The suggestion only works if a substantial number of RECs are withheld from trade. Many individuals are not in a financial situation that allows them to do this. If an energy utility fails to be compliant to their MRET, they will most likely find someone else (if not you) to buy their RECs from. This most probably will be another utility who has exceeded their renewable target At the end of the day, you can't force either an individual or a company to generate green energy, hold on to their RECS or carbon credits (it is a free market system after all!). However, if the government has done their sums right than the regulations associated with the MRET will help drive demand for RECs and the prices needed to purchase them. This may be enough incentive for poorly compliant to get with the program. Re: RECs - does anyone understand them? 8May 04, 2009 3:11 pm Thanks for this advice, I found it when I was searching for answers!! But can I just ask, are Recs of any actual use to us as individuals without targets, apart from any financial gain (either from selling to installers or to/ through agents)? Yes, they summarise the eco-value of the panels, etc that we have just installed, but it doesn't take anything away from the actual installation itself; it is still a green alternative to using more coal or gas. Am I understanding it right? - If I don't sell the Recs, they're not really worth anything apart from money, right? It just sounds like an easy way of helping big companies meet their (ineffective) green power targets....the more Recs they buy from us, the easier they reach their targets without really trying. Am I understanding that right? Thanks. Re: RECs - does anyone understand them? 9May 04, 2009 9:36 pm all, need some little bit of your guidance... i am building through simonds and they are offering solar panels for free via solarbank. i wud need to surrender the RECs to solarbank. can someone explain how this wud work ? so if i surrender the recs to solarbank, how will installing the solar panel be of use to me ? will i be able to sell the the surplus energy to the power companies ? cheers the sun master is the solar heating to "warm" the water in the tank the S26 is your hot water system which will heat the water (25 degrees?) so with both turned on you… 2 13992 I haven’t. But have a Lowe Design home. Not only did I find Matt Lowe patronising and a bully, but the home is NOT TO CODE. I have water coming through the bricks… 1 14369 Hi everyone. I am a single mother with little daughter, living in a small tourist town in WA Australia. I am thinking to install security screens to all the doors and… 0 24780 |