Federal Government changes to Renewable Energy Certificates will slightly affect Bogie Bulk Buy prices over the coming months.
The Bogie Bulk Buy is all about making installing quality solar simple and affordable. While we work hard to ensure the best price for participants in the program, an element of the pricing structure that is beyond our control is the number of Renewable Energy Certificates offered for each install, which is part of the Australian Government Small-scale Renewable Energy Scheme and is set to change at the end of 2017. While the resulting price rise will be just 6%, we want to explain the reasons in the interests on transparency. Bear with us – this article is a little dense.
What are Renewable Energy Certificates (RECs)?
Renewable Energy Certificates (RECs) were introduced in the early 2000's by the Australian Government as incentive to encourage renewable energy generation and uptake across the country. As part of the Renewable Energy Target, RECs is an umbrella term covering Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs). For the sake of simplicity here, we'll just use the umbrella term of RECs.
When you install solar on your home or business, you are awarded a number of RECs according to how much energy it is predicted to generate. RECs have a monetary value, that fluctuates according to market conditions. Basically, a REC is a form of renewable energy currency. In terms of the Bogie Bulk Buy, Cherry has hedged the value of RECs for the duration of the program.
Are RECs something that I need to worry about?
Not really. Owners of systems can go through the necessary paperwork to claim RECs themselves, however it can be very confusing and time consuming. For this reason, generally solar providers handle RECs on their customer's behalf, that then count towards a point of sale discount on your solar install. This is why RECs are often casually referred to as a 'rebate'.
How are the number of RECs I receive calculated?
The number of RECs you will receive as a result of your solar installation is determined by the size of the install and a process of 'deeming'. Basically, this refers to the number of years that your solar installation is predicted to generate renewable energy.
The Clean Energy Regulator determined that deeming provides an efficient method for allocating a meaningful number of certificates to smaller sized systems without the administrative burden of metering each individual system's output. Setting an end-date ahead of time provides our industry and investors with certainty regarding the future of the scheme.
So what is changing?
RECs are offered under the Australian Government Small-scale Renewable Energy Scheme, which will end 2030. As the scheme approaches closure, the deeming period for rooftop solar systems will decline annually. This means that the number of certificates you will receive in 2017 will be different to what you would receive in 2018 – resulting in a smaller point of sale discount on your solar install.
What does this mean for the Bogie Bulk Buy?
In a nutshell, this means that prices for the Bogie Bulk Buy will rise by 6.5% for all systems that are installed in 2018.
A 6.5% increase on our existing price structure is still a fantastic deal. But if you're keen to avoid it, you need to register you interest on this website or by calling YEF before October 1st, 2017.
This is to allow enough time for Cherry to visit your property, arrange a quote and carry out an install before 31 December 2017.
Please feel free to contact YEF on 1300 866 634 to discuss these changes further.