What are RECs?
The Australian Government has set mandatory targets for electricity created from renewable energy sources. RECs are traded like shares via agents/brokers to electricity generators in order for these electricity generators to meet their targets. Your RECs have been incorporated in the price of your solar power system to reduce the overall price. REC values are controlled by market forces meaning they can fluctuate up and down continuously. As an example of the Solar Credit Scheme, if you buy a 1.5 kW system, you will receive: 31 x 5 = 155 Renewable Energy Certificates (RECs) in Zone 3.
Renewable Energy Certificates (RECs) are created when a renewable energy facility generates electricity. A REC is an authorized document that represents a defined amount of electricity (usually one megawatt–hour) at a renewable energy facility. What you pay for when you buy renewable energy certificates is the benefit of displacing polluting types of electricity from the electric grid. About 95% of the electricity in the US is produced by burning coal, oil or gas which all release carbon dioxide into to the atmosphere, contributing to climate change. By purchasing RECs, we are financially supporting renewable energy, lessening our dependence on fossil fuels, and preventing greenhouse gas emissions. (www.green–e.
