[pb_row ][pb_column span="span12"][pb_tab el_title="FAQ's" initial_open="1" fade_effect="no" tab_position="top" appearing_animation="0" ][pb_tab_item heading="STCs/LGCs" icon="" ]
Frequently Asked Questions
1. What is a REC (STC/LGC)?
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 create environmental credits called Renewable Energy Certificates or RECs for short. These credits are a commodity and tradeable like shares on the Australian Stock Exchange. Like other commodities the price of RECs is not fixed and varies with supply and demand. 1 REC equals 1MWh of generation from a renewable source and is part of the Mandatory Renewable Energy Target which is an industry development mechanism created by government in 2001.
From 1st January 2011, the government split the Renewable Energy Target (RET) into two parts the Large Scale Renewable Target (LGCs are created) and the Small-scale Technologies Scheme (STCs are created.). Small-scale technologies are for systems to 100kW's. Systems over 100kW fall into the large scale renewable target scheme.
2. When will I be paid?
Payments terms are from 3 business days for installers and 20 business days for system owners from the day we receive the complete and correct documentation. However, if you are selling registered STCs, payment is the next business day. Please refer our settlement terms page.
3. Do I need to register with Trade In Green for processing of STC assignment forms?
Installer Suppliers - Yes you do need to register with Trade In Green through the new client registration link on the righthand side under the quicklinks menu
System Owners - No when you lodge your form your details are entered into our system.
4. How long do I have to claim payment for my STCs?
STCs can only be created after a system is completely installed. Time limits apply for the creation of RECs based on the installation date. STCs must be created within 12 months of the install date.
5. Will the STC prices improve?
The financial value of a certificate is dependent on the supply of and demand for the certificates. There are many factors which impact prices and as a result this value can be variable from day to day.
6. What do I need to do to claim my STCs?
Please refer to the guide section by clicking on the following link (Guide)
7. Does the STC price include GST?
Our daily REC price does not include GST. GST only applies where the system owner is a registered GST business otherwise where system is installed at a home the STCs are GST free. Whilst Trade In Green does not offer tax advice and we recommend you contact your tax adviser, we have received a ruling from the ATO which clarifies the tax GST requirements for Solar. Please click on the following link (ATO Ruling). Please also view our GST Explained information sheet, ATO Link and REC Agent Association GST Paper
8. If adding additional panels to a system where inverter is no longer on the CEC approved inverter list, can I claim STCs?
No. All inverters must be approved at the time of adding capacity or replacing existing panels. As a result even if adding capacity to an inverter that was previously on CEC approved list (but is no longer approved) you cannot claim STCs as its based on the install date of the additional capacity.
9. Is the deeming period for STCs changing?
Yes. As of 1 January 2019 the deeming period will reduce from 13 years down to 12 years and will continue to reduce for each year thereafter to 2030. For more information please go to the following link.
10. Can I Claim STCs on Replacements Panels?
The Clean Energy Regulator (CER) released a new framework 28/09/17 regarding the eligibility of STCs for replacement panels. STCs will no longer be eligible for STCs for replacement of panels after 31/01/18. Read More
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Peak Demand Reduction Scheme - FAQs
- What is a PRC?
PRCs are the “currency” of the Peak Demand Reduction Scheme (PDRS) and can be bought and sold in the market. The market for the trade of PRCs is created by the obligation of Scheme Participants (typically electricity retailers) to surrender PRCs to us.
PRCs are created from eligible activities that make peak demand reduction capacity available during a compliance period between 1 November and 31 March. Peak demand reduction capacity is measured in kilowatts (kW).
One PRC is equivalent to 0.1 kW of peak demand reduction capacity averaged over one hour between 3.30pm and 9.30pm Australian Eastern Daylight Time (AEDT)i on one day in the compliance period (1 November – 31 March).
PRCs for Batteries?
Trade In Green are in the process of becoming accredited under the Peak Demand Recustion Scheme (PDRS) so we can provide incentives to households and small businesses installing batteries to their premises. The incentives are managed through the registration and trading of PRCs. - When will I be paid?
if you are selling registered PRCs, payment is the next business day, unregistered PRCs generally take 20 business days for payment. Please refer our settlement terms page.
- How many PRCs can I generate?
The number of PRCs depends on the usable kWh capacity of the battery and the energy network you live in. As a guide a Tesla Powerwall with 13.5kWh will generate approx 1,077 to 1,088 PRCs.
- What is an VEEC worth?
PRCs are a commodity traded on the open market so the PRC price will fluctuate. The price we pay for PRCs depends on the market value and can be found on our pricing page.
- Do I need to be registered with IPART to create PRCs?
You can either become an accredited certificate provider under the scheme or operate through an accredited certificate provider like Trade In Green.
- Which products are eligible?
Eligible batteries must be listed on the CEC approved battery list with a size between 2kWh and 28kWh, provide a minimum 10 year product warranty and maintain a minimum 70% usable capacity after 10 years.
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GST Treatment on Certificates
Please note where products are installed at an individual’s address (householder) generally GST is not applied to the certificates (GST Free).
GST only applies where the system owner is a registered GST business otherwise where system is installed at a home the certificates are GST free. Whilst Trade In Green does not offer tax advice and we recommend you contact your tax adviser, we have received a ruling from the ATO which clarifies the tax GST requirements for Solar. Please click on the following link (ATO Ruling). Please also view our GST Explained information sheet, ATO Link and REC Agent Association GST Paper
If you are selling registered certificates, GST only applies if the seller is registered for GST. Trade In Green do not offer tax advice on GST and we recommend you contact your tax professional for advice.
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