Renewable Energy Certificates Payment at an All-time High

Payment for renewable energy certificates have fluctuated between $10 as recently as 18 months ago and a current high of $49.

Every owner of a solar hot water system can generate a certain number of renewable energy certificates (REC’s) and sell them. We look after all the organisation and paperwork for you, so all you will notice is a reduction of the purchase price.

Why does the renewable energy certificate price fluctuate?

Simply because of the demand. Energy retailers have to purchase a certain number of REC’s to reach the mandatory renewable energy target. Other offsetting companies use them to offset greenhouse gas emissions. As more people are demanding these services, the price goes up.

You benefit, because you are paid the value of the renewable energy certificates that are created for your solar hot water system.

Can the prices fall again?

Yes most definitely. They can and have done so in the past.

Can they rise higher?

In theory yes. It just needs more buyers who are willing purchase at higher prices.

However, the mandatory renewable energy target stipulates a penalty rate of $40 (plus 30% company tax). This means that when prices rise above $52, it becomes cheaper to pay the penalty.

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• What are Renewable Energy Certificates (REC)?
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Tags: rebate, REC, renewable energy certificates

This entry was posted on Tuesday, July 1st, 2008 at 10:59 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.