Solar Owners Guide Snapshot – RET Renewable Energy Target
For those considering a solar system to reduce their energy usage, the Office of Renewable Energy Regulator has a handy guide for you to read through. We recommend giving it a read.
RET explained
The Renewable Energy Target (RET) scheme has been established to encourage additional generation of electricity from renewable energy sources to meet the Government¡¦s commitment to achieving a 20% share of renewables in Australia¡¦s electricity supply by 2020. The RET legislation:
- places a legal liability on wholesale purchasers of electricity (liable parties) to proportionally contribute to an additional 45,000 gigawatt hours (GWh) of renewable energy per year by 2020.
- sets the framework for both the supply and demand of renewable energy certificates (RECs) via a REC market.
Who is eligible?
Renewable energy power stations, solar water heaters, heat pump water heaters and small generation units such as small-scale photovoltaic panels may be entitled to RECs if they fulfil accreditation and system eligibility requirements. For more information regarding eligibility requirements see the Solar Water Heater Owners Guide and Small Generation Unit Owners Guide.
RECs are sold and transferred via a market based online system called the REC Registry to liable and other parties in exchange for a financial benefit. This provides significant incentive for growth in renewables across Australia.
What’s the difference between solar photovoltaic panels, heat pumps and solar hot water systems?
Solar photovoltaic panels generate electricity whereas solar water heaters absorb energy from the sun to heat water. Heat pump hot water systems draw heat from the air to heat water.
What is a REC?
A renewable energy certificate (REC) is a commodity in the REC market. RECs are created by eligible parties (renewable energy power stations, solar water heaters, small generation units) and sold to liable parties (wholesale purchasers of electricity) and other parties via the REC Registry to meet their liability under the RET.