read about the rebate changes here<\/a>)<\/p>\n1. The $8000 rebate (for the 1st kW) assuming your household income is under $100k<\/p>\n
2.Renewable Energy Certificates (RECs)- works out at $600-$1200 per kW (the price changes over time)<\/p>\n
The concept of the rebate is easy to understand – it is simply a handout from Mr Rudd to encourage solar power (can’t argue with that!).<\/p>\n
The concept of RECs can be a bugger to get your head around. So here is my attempt at an explanation:<\/p>\n
Imagine that you own a solar panel that pumps out $1000 of electricity every year. Imagine that this is enough to power your entire home.<\/p>\n
Your neighbour, Fred happens to use exactly as much electricity as you, but gets his electricity from the grid, which is supplied by a filthy coal fired power station down the road.<\/p>\n
Fred looks longingly at your shiny solar panel and after he can’t take the guilt any more, chooses to switch to ‘green power’ from his electric company. He signs up on the power company’s website to buy $1000 per year of green electricity.<\/p>\n
Fred’s power company now has 2 options to honour their contract with Fred:<\/p>\n
a) build a renewable energy generator that produces Fred’s $1000 of green electricity per year and feed it into the grid to make up for the energy that Fred uses<\/p>\n
b) not bother with all that pesky green electrickery engineering stuff, and buy the $1000 worth of green electricity from someone who already has a renewable energy generator (like your rooftop solar panel)<\/p>\n
If they plump for the lazy option and they want to buy YOUR green electricity from your solar panel, they could theoretically knock on your door, sit down at your kitchen table \u00a0and hammer out a contract whereby they buy $1000 of your shiny green electricity from you every year.<\/p>\n
A REC is simply a ‘voucher’ that you sell that allows anyone to buy your green electrcity from you at market rates and without having the administration nightmare of creating an individul contract for each renewable generator owner.<\/p>\n
So your $1000 of RECs happens to be bought by Fred’s power company.<\/p>\n
Think about what this would mean.<\/p>\n
It means that they don’t have to change anything about the way they generate Fred’s share of their electricity generation, but Fred can now claim that his electricity is coming from your solar panel!<\/p>\n
And the logical conclusion to that is that your household’s electricity is now coming from the dirty power station!<\/p>\n
Funny things those RECS.<\/p>\n
The solar rebate will soon be replaced with the Solar Credits scheme which comes in in July 2009. In this scheme the government subsidises your installation by giving you 5 times the RECS that your system will actually generate.In the above example that means that you could sell your green energy to Fred and 4 other neighbours so they could all claim green power even though you were only generating enough energy to power Fred’s house. What The?!<\/p>\n
The flipside of the argument is that RECs encourage renewable generation to be built that wouldn’t otherwise see the light of day.<\/p>\n
You’ll have to make your own mind up!<\/p>\n
There’s also a great article from the ATA here: ‘Don’t Wreck Those RECS’.<\/a><\/p>\n <\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
When you buy a solar system in Australia you can apply for 2 upfront subsidies from the government: (note: this all changes on July 1, 2009: read about the rebate changes here) 1. The $8000 rebate (for the 1st kW) assuming your household income is under $100k 2.Renewable Energy Certificates (RECs)- works out at $600-$1200 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[54],"tags":[33],"class_list":["post-3","post","type-post","status-publish","format-standard","hentry","category-solar-policy","tag-solar-rebates","entry"],"acf":[],"yoast_head":"\n
What on Earth are Renewable Energy Certificates (RECs)?<\/title>\n<meta name=\"description\" content=\"When you buy a solar system in Australia you can apply for 2 upfront subsidies from the government - rebates and Renewable Energy Certificates (RECs).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solarquotes.com.au\/blog\/what-on-earth-are-renewable-energy-credits-recs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What on Earth are Renewable Energy Certificates (RECs)?\" \/>\n<meta property=\"og:description\" content=\"When you buy a solar system in Australia you can apply for 2 upfront subsidies from the government - rebates and Renewable Energy Certificates (RECs).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.solarquotes.com.au\/blog\/what-on-earth-are-renewable-energy-credits-recs\/\" \/>\n<meta property=\"og:site_name\" content=\"SolarQuotes Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SolarQuotes\/\" \/>\n<meta property=\"article:published_time\" content=\"2009-03-03T13:31:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-05-03T04:16:48+00:00\" \/>\n<meta name=\"author\" content=\"Finn Peacock\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@FinnPeacock\" \/>\n<meta name=\"twitter:site\" content=\"@solar_quotes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/what-on-earth-are-renewable-energy-credits-recs\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/what-on-earth-are-renewable-energy-credits-recs\/\"},\"author\":{\"name\":\"Finn Peacock\",\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/#\/schema\/person\/495c35fb3086e6ef93220dcf2472b178\"},\"headline\":\"What on Earth are Renewable Energy Certificates (RECs)?\",\"datePublished\":\"2009-03-03T13:31:51+00:00\",\"dateModified\":\"2017-05-03T04:16:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/what-on-earth-are-renewable-energy-credits-recs\/\"},\"wordCount\":580,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/#organization\"},\"keywords\":[\"Solar Rebates\"],\"articleSection\":[\"Solar Policy\"],\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.solarquotes.com.au\/blog\/what-on-earth-are-renewable-energy-credits-recs\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/what-on-earth-are-renewable-energy-credits-recs\/\",\"url\":\"https:\/\/www.solarquotes.com.au\/blog\/what-on-earth-are-renewable-energy-credits-recs\/\",\"name\":\"What on Earth are Renewable Energy Certificates (RECs)?\",\"isPartOf\":{\"@id\":\"https:\/\/www.solarquotes.com.au\/blog\/#website\"},\"datePublished\":\"2009-03-03T13:31:51+00:00\",\"dateModified\":\"2017-05-03T04:16:48+00:00\",\"description\":\"When you buy a solar system in Australia you can apply for 2 upfront subsidies from the government - 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Every so often I get an email from someone who is desperately worried that their solar installer is using the STC price to rip them off. The suspicion is usually kicked off by one of two things: 1)\u00a0The\u2026","rel":"","context":"In "Solar Installation"","block_context":{"text":"Solar Installation","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-installation\/"},"img":{"alt_text":"A solar crook","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2012\/02\/solar-crook.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":936,"url":"https:\/\/www.solarquotes.com.au\/blog\/how-not-to-save-1000-on-your-solar-system\/","url_meta":{"origin":3,"position":1},"title":"How NOT to save $1,000 on your solar system","author":"Finn Peacock","date":"February 1, 2012","format":false,"excerpt":"I got this email today: \"Hi Finn, I've got a quote for a 1.5kW solar system for $2500 and a 3kW system for \u00a0$6000. I want 3kW. 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The company owns more than 25 brands, sells products in around 150 countries, has 48,000 employees worldwide, clocks up billions of\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Est\u00e9e Lauder - solar energy","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/11\/estee-lauder-solar.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/11\/estee-lauder-solar.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/11\/estee-lauder-solar.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/11\/estee-lauder-solar.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/11\/estee-lauder-solar.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":87973,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-rebate-2025-mb3046\/","url_meta":{"origin":3,"position":5},"title":"Australian Solar Rebate Reduction Nears: What You Should Know","author":"Michael Bloch","date":"November 7, 2024","format":false,"excerpt":"In just under 8 weeks, Australia's solar panel rebate won't be as generous as it is now. Here's what's happening in 2025. Not to be confused with feed-in tariffs (credits for exporting electricity to the grid), the rebate is actually an up-front discount on the cost of an eligible solar\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Australia's solar rebate in 2025","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/11\/solar-rebate-2025.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/3","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/comments?post=3"}],"version-history":[{"count":14,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/3\/revisions"}],"predecessor-version":[{"id":11019,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/3\/revisions\/11019"}],"wp:attachment":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media?parent=3"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/categories?post=3"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/tags?post=3"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}