SGU Owners Guide
RET process for Owners of Small Generation Units (SGUs)
small-scale solar photovoltaic panels, wind and hydro electricity units
Options for gaining financial benefits from your RECs
The Renewable Energy Target (RET) scheme does not provide a rebate or feed-in tariff. The purchase of an SGU (small-scale solar photovoltaic panel, wind or hydro electricity system) may entitle you to renewable energy certificates (RECs) if your SGU is eligible. These certificates can then be sold and transferred to liable parties on a market based online system called the REC Registry.
For more information about RET visit - RET - the basics
For more information about rebates and feed-in tariffs for SGUs contact your State Government or agent/retailer/installer.
- You must be the owner of the system at the time it is installed to be entitled to assign RECs to an agent or create RECs in the REC Registry. In some circumstances where the SGUs are installed in new buildings, this can be the builder or property developer.
There are two options for reimbursement of your RECs under the RET scheme:
Option 1 - Agent Assisted
Find an agent and assign your RECs to the agent in exchange for a financial benefit which could be in the form of a delayed cash payment or upfront discount on your SGU. A majority of owners take this option.
Option 2 - Individual Trading
Create the RECs yourself. Find a buyer then sell and transfer them in the REC Registry.
What is a SGU?
A small generation unit (SGU) is classified as a small-scale solar photovoltaic panel, wind or hydro unit. SGUs generate electricity and have the following requirements:
| System type | System capacity and annual electricity output | Installation periods |
|---|---|---|
| Small wind turbines | No more than 10 kW and a total annual electricity output less than 25 MWh | On or after 1 April 2001 |
| Solar (photovoltaic) systems | No more than 100 kW and a total annual electricity output less than 250 MWh | On or after 14 November 2005 |
| Solar (photovoltaic)systems | No more than 10 kW and a total annual electricity output less than 25 MWh | Between 1 April 2001 and 13 November 2005 |
| Hydroelectric systems | No more than 6.4 kW and a total annual electricity output less than 25 MWh | On or after 1 April 2001 |
RECs defined
Renewable Energy Certificates (RECs) are an electronic form of currency created on the REC Registry by eligible parties. A REC is generally equivalent to:
- 1MWh of renewable electricity generated above the power station baseline; or
- 1MWh of renewable electricity deemed to be generated by small generation units; or
- 1MWh of electricity deemed to be displaced by the installation of solar water heaters.
Properly created RECs are validated by ORER and registered RECs can be transferred between eligible parties (renewable energy power stations, solar water heaters, small generation units) and liable parties (typically wholesale purchasers of electricity) for a negotiated price. Payment is arranged outside the REC Registry.
RECs are surrendered annually by liable parties to demonstrate liability compliance against the requirements of the RET or voluntarily surrendered.
Installation advice and procedures
Units must be installed before creating RECs.
Under the Act and Regulations CEC accreditation is required for the following installation periods:
| Unit type | Date of installation | CEC accreditation required |
|---|---|---|
| Solar (photovoltaic) units | Before 20 August 2010 | Yes, for 15 year deeming period. No, for 1 and 5 year deeming period |
| Solar (photovoltaic) units | On or after 20 August 2010 | Yes, for all deeming periods |
| Wind and hydro units | Before 20 December 2010 | Not required |
| Wind and hydro units | On or after 20 December 2010 | Yes, for all deeming periods |
CEC accredited installers are required to:
- Ensure that the installation has all applicable local and state/territory Government approval requirements
- Ensure that the SGU and its installation, including wiring, meets Australian and International Standards, and that key components are listed on the Clean Energy Council’s list of approved products.
- Ensure that the mounting and orientation of the SGU are in line with the Clean Energy Council accreditation requirements.
Documents required for compliance before RECs can be assigned to the agent
If you are installing a solar photovoltaic panel on or after 20 August 2010 or installing a small-scale wind or hydro unit on or after 20 December 2010 your agent/installer/retailer
- May ask you to sign a statement that all required local and state/territory Government requirements have been met.
- Is required to provide you with a copy of any documentation required, by the laws of the jurisdiction in which the unit was installed, certifying that the electrical installation of the unit complies with laws relating to safety and technical standards. This could be in the form of a Certificate of Compliance, Installation Report and Electrician’s Licence. For further information regarding relevant installation certification please contact your relevant state authority.
Do not assign your RECs until you have been provided with this documentation and you are happy that the unit is installed and working.
If your SGU unit has not been installed and you have already assigned your RECs to an agent by signing a REC Assignment Form contact the ORER compliance team by emailing compliance@orer.gov.au
REC prices
The Office of the Renewable Energy Regulator (ORER) does not set the price of RECs nor does it get involved in disputes between buyers and sellers. Payment for RECs or the rights to create RECs is a contractual matter between the buyer and seller. In the past decade the spot price of a REC has varied between AUD$15 and AUD$60. This information is based on third party data provided to ORER.
Helpful links
The below links are helpful for owners of SGUs:
- Living Greener – is an Australian Government website containing information for householders to help them live more sustainably. This includes information on solar photovoltaic panels and small-scale wind and hydro units.
- Your Home – is an Australian Government website that contains a suite of consumer and technical guide materials and tools developed to encourage the design, construction or renovation of homes to be comfortable, healthy and more environmentally sustainable.
- Department of Climate Change and Energy Efficiency – For policy updates. The Department of Climate Change and Energy Efficiency also offers a solar water heater and heat pump rebate through the Energy Efficiency, Solar and Water Initiative in addition to RECs. For more information contact 1800 808 571.
- Clean Energy Council - Manages the accreditation of installers of small generation units and is the peak body representing Australia’s clean energy sector.
SGU process - Options for gaining financial benefits from your RECs
