RECs are electronic certificates that represent blocks of generated renewable energy. Each unique certificate for solar water heaters represents 1 megawatt per hour of displaced electricity.

RECs were developed as a direct result of the Commonwealth Renewable Energy (Electricity) Act 2000 to reduce greenhouse gas emissions from the use of electricity.

Under Commonwealth Government legislation, electricity retailers and other wholesale purchasers of electricity are now required to proportionately contribute the generation of an additional 2% of energy from renewable energy sources, (or in the case of solar hot water, the displacement of electricity) or pay a shortfall tax.

This national obligation is met by purchasing RECs, which represent registered renewable energy generation. The market value of RECs vary, and they can be traded between companies and individuals like shares and must be surrendered each year to the Office of the Renewable Energy Regulator (ORER).

You are eligible to receive a fixed number of RECs if you install an approved* solar water heater and the system is:

• installed on or after 1 April 2001, and
• the system is listed in the schedule of the regulations, and
• is installed in a new, dwelling, or
• is the first installation of a water heater in an existing building, or
• is replacing an existing electric hot water system, or
• if the system is replacing an existing electric boosted solar hot water system with a more efficient model.

If you have installed a new solar water heater to replace an older, less efficient electric-boosted solar water heater, the number of certificates for which the system is eligible will be the difference (i.e. number of RECs) between the existing and new solar water heater.

Note that systems must be installed on or after 1 April 2001 to be eligible. RECs must also be created within 12 months of the solar installation date.

Of course, you can also receive RECs for forms of registered renewable energy generation, for example installing a solar power (photovoltaic) system on your roof. For more information on RECs for other forms of renewable energy generation, contact ORER.

*Approved solar hot water systems are listed in the Renewable Energy (Electricity) Regulations
(see www.orer.gov.au for a list of approved systems).

RECS for solar hot water are bundled, that is, you receive RECS according to the electricity displacement over a 10 year period. The number of RECs you can claim has been determined based on the following:

• where you live (your postcode)
• the performance of the system as listed in the regulations
• if the system is a new installation or replacing an existing electric or solar system Talk to your solar hot water retailer about the exact number of certificates you can claim or visit the following website for more information: http://www.orer.gov.au/

There are two ways to claim RECs:

• Complete a Registration Form - available from the Office of the Renewable Energy Regulator CORER) pay a $20 registration fee and then sell your RECs online (www.rec-registry.com) to a buyer, or

• Your Smart Water & Energy agent can provide you with the necessary paperwork to claim your rebate direct from the manufacturer. The REC rebate for an average 300 ltr solar system can amount to around $ 800 (Terms & Conditions apply).

Australian Greenhouse Office -	www.greenhouse.gov.au
Office of the Renewable Energy Regulator -	www.orer.gov.au
Energy Smart Information Centre -	www.energysmart.com.au

Telephone or visit the Energy Smart Information Centre, Monday to Friday 9am-5pm, for
further information:

Ph. 1300 138 638, Level 6, 45 Clarence Street, Sydney or visit www.energysmart.com.au

The Energy Smart Information Centre is a free advisory service provided by the NSW Government. Energy experts can provide information on a wide range of topics.