What is a REC?
When you install solar power, solar water heating and other renewable energy technologies you are helping to reduce greenhouse gas emissions. This entitles you to receive environmental credits called Renewable Energy Certificates (RECs)
These credits are a commodity and are tradable like shares. Like other commodities the REC price is not fixed and fluctuates with supply and demand.
Organisations in Australia such as power and gas companies (liable parties) must purchase specified quota of certificates, on a quarterly basis in order to meet their own renewable energy targets set by the government. This creates the demand for the certificates and Australian residents and business provide the supply of certificates after they install renewable energy technologies.
Greenbank Environmental is the largest independent creator of these certificates in Australia, purchasing certificates from consumers and selling them to organisations that have a government mandate to acquire them.
RECs are made up of two types of certificates – Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs)