Small-Scale Technology Certificates STCs (formerly RECs)

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What are Small-scale technology certificates STCs (formerly RECs)?
When you install a Greenland Systems solar hot water system you are helping to reduce Australia's greenhouse gas emissions. For all systems installed after 1 Jan 2011, you are entitled to create environmental credits called Small-scale technology certificates (STCs). (For systems installed prior to 1 Jan 2011, Renewable Energy Certificates (RECs) will be created instead). These certificates are a commodity and can be traded just like shares through a registered agent. 1 STC/REC equals 1MWh of generation from a renewable source and is part of the Mandatory Renewable Energy Target which is an industry development mechanism created by government in 2001. If you have any questions regarding the calculators or STC/RECs in general, please contact us.
STC/RECs for Solar hot water systems
All water heaters are tested for efficiency and their STC/REC value is calculated through the Office of the Renewable Energy Regulator (ORER). The numbers of STC/RECs that can be created also relies on the location of the unit and what zone it falls into. NB: Tasmania falls into Zone 4.
Goods & Services Tax GST
Small-scale technology certificates (STCs) & Renewable Energy Certificates (RECs) traded may attract GST. Systems installed for business use and owned by a business registered for GST is able to receive the trading price plus GST. Systems installed for domestic use are not eligible to receive GST. Certificates are generally owned by the owner of the property/unit at the time of install, not the installer or supplier. The trade is undertaken between the agent (i.e. Solar Water Wise) and the owner.
Are STC/RECs a government rebate?
No. STC/RECs are traded within a market based certificate trading scheme designed to encourage additional generation of electricity from renewable sources.
What systems are eligible to create STC/RECs?
Approved and registered solar water heaters, heat pumps, photovoltaic systems, wind systems and small hydro electric systems may be eligible to create STC/RECs if they meet the required criteria by ORER. Visit ORER Register for a full list of approved systems.
What is a STC/REC worth?
The financial value of a STC/REC is dependent on the supply of and demand for STC/RECs. As a result this value can be variable from day to day. Price is held when complete and correct claims are received at our office. Please contact us for an update on current pricing.
How many STC/RECs does my system create?
The amount of STC/RECs a system is eligible to create is determined by The Office of Renewable Energy Regulator. System size, type and location can influence the number of eligible STC/RECs. Your tax invoice will generally indicate the number of STC/RECs available per registered system. Alternatively, you can visit the ORER Solar Water Heater STC Calculator.
How long do I have to claim payment for my STC/RECs?
STC/RECs can only be created after a system is completely installed. Time limits apply for the creation of STC/RECs based on the installation date. Solar Hot water heater STC/RECs must be created within 12 months of the install date.
How and when will I receive payment?
Solar Water Wise will make payment 14-21 days after receiving complete and correct paperwork and supporting documentation. Payment is deposited directly into the bank account nominated on the STC/REC Assignment Form. Any missing information or documentation can delay your payment.
How do I claim payment for my STC/RECs?
The Solar Water Wise STC/REC Assignment form must be completed. Downloaded STC/RECs form. All information requested on the form must be provided as it is required by ORER for the creation of STC/RECs. Supporting documentation must be provided with the form to complete your claim. A copy of the invoice from your installer/supplier with the installation address should be provided. An additional document being a compliance certificate, installation or warranty report should also be provided when applicable.
Am I eligible for any other grants or rebates?
Your system may be eligible for additional grants or rebates. Contact us or further information.
Why is my form under audit?
The Office of Renewable Energy Regulator verify all information provided to them before creating STC/RECs. Claims will generally require an audit to be completed if a tank serial number is duplicated, another agent has already created RECs for the claim or STC/RECs already exist at an address from previous or multiple systems. Audits can generally be resolved by providing pictures of the installation and serial numbers in question and some cases require Statutory Declarations. Greenbank recommends pictures to be taken at the time of install to assist if the auditing process is required.

Federal Government Rebate

Renewable Energy Bonus Scheme - Solar Hot Water Rebate

The Renewable Energy Bonus Scheme - Solar Hot Water Rebate is available to help eligible home-owners, landlords or tenants to replace their electric storage hot water systems with solar or heat pump hot water systems.

Eligible households can claim a rebate of $1,000 for a solar hot water system through the rebate. This rebate applies for systems ordered and purchased from 20 February 2010.

Guidelines and application form

A booklet incorporating all documents and information you will need on the rebate is available for download: Renewable Energy Bonus Scheme - solar and heat pump rebate - guidelines and application form.

Links

The following (external) Government links may be helpful:

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