Q: How long is the Solar Power Purchase Agreement?
A: Terms are generally between 10 and 20 years.
Q: What happens at the end of the agreement term?
A: The Solar system is then owned by the business owner at no additional cost. The system generally has a lifetime of 25-30 years.
Q: What if I want to own the system earlier?
A: There is a buyout option under the agreement. The amount to buy out the system reduces each year until the term of the agreement when it reduces to zero.
Q: Do I need to change energy retailers?
A: No, you stay with your existing energy retailer. The energy generated by the solar system reduces the amount of energy you need to purchase from the energy retailer
Q: How much can I save on energy costs?
A: Typically, in the first year of the agreement, the amount you are charged for the green solar power is 10-20% less than what you are paying for you coal generated energy and 60-70% less than the cost of purchasing green power from the energy retailer. As the price for the solar power generated is fixed for the term of the agreement, the savings increase as your energy retailers price increases over the coming years.
Q: What if something goes wrong with the system during the term?
A: The system is fully maintained by Trade In Green. The system is remotely monitored and if a fault is detected we will generally resolve the issue within 48 hours. We will fix and maintain the system for the term of the agreement. Energy supply is not affected as you are still supplied energy by your energy retailer
Q: Do you need access to maintain the system?
A: Yes, we need access to the system as we check and maintain the system during the term of the agreement.
Q: Do I have access to the online system to see how much power is being used
A: Yes you are given full online access to the usage data
Q: How often am I charged for the solar energy used?
A: You are charged monthly for the energy used from the solar system.
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?
No, when you lodge your first 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 2017 the deeming period will reduce from 15 years down to 14 years and will continue to reduce for each year thereafter to 2030. For more information please go to the following link.
Victorian Energy Efficiency Target Scheme - FAQs
- What is a VEEC?
A VEEC is a Victorian Energy Efficiency Certificate created through the Victorian Energy Efficiency Scheme.
The scheme gives households, and from 2012 businesses, access to discounts on a growing range of energy efficient products and services. Under the scheme, VEECs may be generated for installing eligible energy efficient products. The number of certificates that can be generated is based on the greenhouse gas savings associated from choosing the higher efficiency product over a regular product.
The Victorian Government requires energy retailers to meet an annual target through retiring Victorian Energy Efficiency Certificates (VEECs). The annual target for the first three years of the scheme (2009-2011) will save 8.1 million tonnes of greenhouse gas, the equivalent of making around 675,000 households carbon neutral for a year.
Who can participate in the VEET Scheme?
The Essential Services Commission (ESC) administers the scheme. To participate in the scheme parties need to be Accredited Persons under the scheme. Trade In Green is an Accredited Person which means we create VEECs.
Trade In Green then sells VEECs to liable parties (such as energy retailers) who are required to surrender them to the government as part of their requirements as a liable party. If a liable party does not surrender enough certificates they must pay a penalty per VEEC.
- When will I be paid?
Payments terms are from 3 business days for installers and 20 business days for individuals from the day we receive the complete and correct documentation. However, if you are selling registered VEECs, payment is the next business day. Please refer our settlement terms page.
- How many VEECs can I generate?
Please view our calculation page which links you to the VEET website containing the calculators.
- What is an VEEC worth?
VEECs are a commodity traded on the open market so the VEEC price will fluctuate. The price we pay for VEECs depends on the market value and can be found on our pricing page.
- Do I need to be registered with the ESC to create VEECs?
No. Trade In Green has registered with the ESC to create VEECs on your behalf so there is no need for you to register.
- Which products are eligible?
Please contact us and view our product guide page for VEECs.
- Which activities are Trade In Green accredited for?
Trade In Green are accredited for the following activities:
- Water Heater Replacement
- Spatial Heating and Cooling
- High Efficiency TVs, Dryers, Fridges and Freezers
- Your requirements?
You are required to ensure that you comply with the requirements of the VEET scheme as outlined by the ESC.
- What documentation is required?
Nominations form can be downloaded from the form page on our website. Information required is :
- Nomination form
- Proof of Purchase of the Goods (invoice from supplier)
- Proof of destruction of item being replaced (water heaters/Spatial Heaters/Coolers Only)
- Certificate of Compliance for the work (where plumbing and electrical work performed)
- How long do I have to claim the VEECs?
VEECs must be registered by 30 June after the preceeding year. (eg Supply/Install in 2013 must be clained by 30/06/14)
Energy Savings Scheme - FAQs
1) What is an ESC?
An ESC is an Energy Savings Certificate created through the Energy Savings Scheme.
The Energy Savings Scheme is a NSW-based energy efficiency scheme which commenced on 1 July 2009. The objectives of the Energy Savings Scheme are:
- to assist households and businesses to reduce electricity consumption and electricity costs;
- to complement any national scheme for carbon pollution reduction by making the reduction of greenhouse gas emissions achievable at a lower cost; and
- to reduce the cost of, and the need for, additional energy generation, transmission and distribution infrastructure.
The Energy Savings Scheme is designed to increase opportunities to improve energy efficiency by placing obligations on parties to undertake or pay for energy efficiency programs, and rewarding companies that undertake eligible projects that either reduce electricity consumption or improve the efficiency of electricity use. It was developed as a complementary but independent measure to the proposed Carbon Pollution Reduction Scheme.
2) Who can participate in ESS?
The Independent Pricing and Regulatory Tribunal (IPART) administers the scheme. To participate in the scheme parties need to be Accredited Certificate Providers under the scheme. Trade In Green is an Accredited Certificate Provider which means we create ESCs on behalf of the Original Energy Saver i.e the person/company that pays for the electricity.
Trade In Green then sells ESCs to liable parties (such as energy retailers) who are required to surrender them to the government as part of their requirements as a liable party. If a liable party does not surrender enough certificates they must pay a penalty per ESC.
3) How many ESCs can I generate?
IPART has created a Commercial Lighting Calculation Tool which can be found on their website but can also be downloaded here. The Tool is pre-programmed with default values.
4) What is an ESC worth?
ESCs are a commodity traded on the open market so the ESC price will fluctuate. The price we pay for ESC depends on the market value and can be found on our pricing page.
5) Do I need to be registered with the IPART to create ESCs?
No. Trade In Green has registered with IPART to create ESCs on your behalf so there is no need for you to register.
6) Which products are eligible?
IPART list the brand and model of approved products which can be found on the Energy Savings Scheme Products page.
7) Which activities are is Trade In Green accredited for?
As an Accredited Certificate Provider (ACP) Trade In Green is able to create ESCs for eligible for Commercial Lighting projects.
8) Your requirements to participate?
You are required to ensure that your installers comply with the requirements of the ESC scheme as outlined by IPART. Installers undertaking commercial lighting must be qualified electricians and meet industry regulations and provide a certificate of compliance for the electrical work. Insurance are also required including, $20M Public Liability, $5M product liability and workers compensation insurance.
9) What documentation is required?
Trade In Green will provide the paperwork and information to facilitate the efficient and compliant processing of activity projects. You will be required to attend an induction with the electricians.
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.