Re-green your solar: buying back your RECs can be easy, effective and tax deductible!
Just the knowledge that installing a solar hot water or solar PV system will help reduce Australia’s carbon footprint, and generate clean electricity is all the motivation many people need to invest in renewable energy.
What many people don’t know, is the discount they received on their Solar PV or Solar Hot Water system, when they assigned over their Renewable Energy Certificates (RECs), actually meant selling off their clean energy status to electricity retailers or large energy consumers.
While buying back Renewable Energy Certificates is possible, it can end up being an expensive way to reclaim the greenness of the system.
A more financially savvy option for re-greening systems may be to purchase tax deductible carbon offsets.
Create your own eco-ripple and re-green your RECs!
FAQs
Should I buy back my RECs or purchase Carbon Offsets?
Click here to read the ReNew article Don’t Wreck Those RECs
Click here to read the ReNew article Going Carbon Neutral.
How do I know if I have sold my RECs?
Contact the Office of the Renewable Energy Regulator (ORER)
How many RECs does my PV system generate?
By simply calculating the number RECs originally created by your PV, you will know how many carbon offsets you will need to re-green your solar system.
A one kilowatt system (1kW) creates between 20 and 30 RECs, which are equivalent to between 20 and 30 megawatt hours (MWh) of clean electricity generation, depending in which state the system was installed.
One megawatt hour of normal electricity generation produces 1.31 tonnes of greenhouse gas (in Victoria), and depending on the carbon offset company you choose, 1.31 tonnes of greenhouse gas can be offset for between $15 to $30
Use the formula and table below to work out how many RECs your PV system created:
Capacity factor for your zone x Solar System Size x 15 years = Number of RECs created
(1 REC = 1 MWh of electricity generation)
Capacity Factors from the ORER, based on location:
| Zone | MWh/year |
| 1 | 1.622 |
| 2 | 1.536 |
| 3 | 1.382 |
| 4 | 1.185 |
Zones are based on solar capacity in the region: Alice Spring = 1, Darwin = 2, Brisbane and Sydney = 3, Melbourne = 4.
For more info go to www.orer.gov.au/publications/photovoltaic.html
How many RECs does my Solar Hot Water system generate?
The number of RECs Solar Hot Water systems are entitled to create depends on the model, installation date and geographic location (zone).
Visit the following website to calculate your RECs.
- RECs calculation tables www.orer.gov.au/swh/register.html
- Zones by post code www.orer.gov.au/publications/pubs/register-postcode-zones-v1-1107.pdf
How do I purchase carbon offsets?
There are many reputable companies that specialise in carbon offset schemes.
Each provider offers a unique product – some invest in renewable energy projects while others invest in re-forestation projects. It is important to note that not all offset providers have tax deductibility status.
More info on Carbon Offset providers:
www.carbonoffsetwatch.org.au
How do I find a RECs agents
www.orer.gov.au/publications/agents.html
How do I voluntarily surrender of RECs so that they can not be sold again?
www.orer.gov.au/recs/index.html#how-to-surrender
