A large proportion of homeowners are unaware of Renewable Energy Certificates (RECs) and the role they play in the purchase and installation of a solar hot water heater, according to EcoSmart Solar Hot Water Systems .

RECs are used as an electronic form of currency, created by the government to help reduce Australia’s energy consumption in the Renewable Energy Target. An REC is equal to 1 MegaWatt hour created by a renewable source. The monetary value of an REC is based on market demands and can change regularly.

EcoSmart NSW Hunter and Coast Business Operator, David Boertje, receives many phone calls from confused homeowners who are unaware of the existence of RECs and do not understand how it relates to solar hot water heaters.

“With all the different rebates and environmental incentives from the Government, it is very easy for consumers to be confused and inundated. However, it is vital they understand the importance of the RECs system when they consider their environmental water heater purchase," says Boertje.

“RECs play an important role in comparing the efficiency of different water heaters. The amount of energy an environmental water heater saves, will determine how many certificates are assigned to the system. Depending on the system chosen, this will have different effects on the homeowner’s energy consumption, and the amount of money awarded back to the homeowner,” he added.

RECs are separate to rebates and are monitored by the Office of the Renewable Energy Regulator (ORER), a statutory authority established to oversee the implementation of the Australian Government's Renewable Energy Target.

Based on the energy savings of a system, ORER assigns an REC. The more environmentally friendly the system is, the higher the REC's value and subsequently, the discount on the cost of the system. Each REC assigned to a system is the equivalent of 1,000 kilowatts of energy saved.

When compared to equivalent hot water systems, the EcoSmart range of solar hot water heaters offer one of the highest REC values on the market, thereby saving more money for the homeowner and being kinder to the environment.

A solar water heater installed to replace a conventional electric water heater, in the average household in NSW, will save up to 4 tonnes of CO2 per year, this is equivalent to taking one car off the road each year. It not only has the ability to reduce hot water energy usage by up to 80%, but can achieve electricity savings of $300 to $700 annually.

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