Renewable Energy Certificates (RECs)/Small-scale Technology Certificates (STCs): How is the price determined?

The prices of Renewable Energy Certificates fluctuates with supply and demand

The Federal Government began an initiative in December 2001 to place a value on displacement of greenhouse gases. It created a scheme whereby Renewable Energy Certificates (RECs, now divided into two categories: Small-scale Technology Certificates or STCs for systems up to 100 kilowatts, and Large-Scale Generation Certificates or LGCs for systems over 100 kilowatts) could be cashed in so as to provide financial incentive for installing renewable energy systems such as solar. One REC/STC is equivalent to one megawatt-hour (MWH) of electricity generated from a renewable energy source over a 15-year period, or roughly one tonne of abated greenhouse gas.

RECs/STCs are payable regardless of whether you install a grid connect or stand-alone solar energy system. The more powerful your installation is, up to a maximum capacity of 100KW, the more you are entitled to. The monetary value of one REC/STC can change daily.

What is the current REC price?

Under the federal government's Enhanced Renewable Energy Target, two types of certificates are issued: Small-scale Technology Certificates (STCs) or Large-Scale Generation Certificates (LGCs). STCs are issued to those who install smaller, residential-scale renewable power systems, while LGCs are issued when large-scale renewable energy capacity is created or added to conventional power generation plants.

STC price: $31 per certificate

LGC price: $38 per certificate

Last updated: 11am 22 February 2012

Source: cleanenergycouncil.org.au

Further reading on financial incentives for solar power systems

Read about the Enhanced Renewable Energy Target, which establishes the framework in which Renewable Energy Certificates are created and traded.

Previous Solar Choice articles about RECs / STCs.

Read about State Solar Feed-in Tariff Incentive schemes.

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