Impact of phantom RECs under estimated: solar-homes make major contribution
Tuesday 24 February 2009
The contribution small-scale renewable energy sources, such as roof-top solar, make to reducing Australia’s greenhouse gas emissions is far greater than expected.
Figures in a submission to the Department of Climate Change’s Draft Renewable Energy Target (RET) legislation committee, shows almost five per cent of the Renewable Energy Certificates generated in 2008 came from small-scale solar and wind.
“If the federal government’s Solar Credits Scheme had been in effect during 2008, there could have been up to 1.47 million ‘phantom’ RECs in the system,” says Damien Moyse, Energy Advocate for the ATA.
“This is equivalent to 15.5% less clean energy production in Australia.”
The government’s new Solar Credits Scheme, due to replace the Solar Rebate in July, will supply solar-homes with five times the RECs normally required under the Renewable Energy Target, resulting in four out of the five RECs not representing real clean energy generation.
Solar-homes will have to sell their phantom RECs to electricity retailers in order to recoup up to $7500 on the upfront cost of their system.
Mr Moyse says solar-homes will be selling off five times the RECs despite not producing 5 times the clean energy, effectively canceling out their climate-friendly solar electricity generation.
“These phantom RECs will be helping electricity retailers achieve their Renewable Energy Targets (RET) on paper, but not in real renewable electricity generation.”
“These figures show that phantom RECs have the potential to significantly reduce renewable energy generation in Australia,” says Mr Moyse.
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Media enquiries: Bojun Chiswell – Media Manager – T(03) 9631 5409 E.bojun@ata.org.au
