Registered Agent Responsibilities

It’s important for Registered Agents to understand how the Small-scale Renewable Energy Scheme (SRES) works and to be able to communicate this clearly to the householders and businesses purchasing small-scale systems.

If the scheme is not communicated clearly the householder or business is often confused as to why they are assigning their certificates and their role in the scheme.

It’s also important to know about the Large-scale Renewable Energy Target (LRET) and how both the LRET and SRES are increasing renewable energy electricity in Australia.

See the following for more information:

• About the Small-scale Renewable Energy Scheme
• About the Large-scale Renewable Energy Target

It is your responsibility to educate owners of small-scale systems regarding their contribution to the schemes.   To help with owner education, the Clean Energy Regulator has developed a small tri-fold brochure called "What you need to know about STCs".

The brochure outlines the basics of Small-scale Technology Certificates - what they are, how people get money for them, how they're assigned, and who the Clean Energy Regulator is. It also contains a blank section in which to add your businesses contact details.  The Clean Energy Regulator recommends that Agents should provide a copy of this brochure to homeowners prior to STC Assignment. 

The Clean Energy Regulator has also developed a summary of the Renewable Energy Target, including information about the Large-scale Renewable Energy Target and the Small-scale Renewable Energy Scheme in brochure called "About the RET".

The booklet provides an accessible overview of the renewable energy schemes managed by the Clean Energy Regulator. It's designed for internal education and circulation, as well as supply to interested stakeholders.

Printed brochures can be sent free of charge to Agents. Agents can order these brochures in quantities of 1200 for ‘What you need to know about STCs’ and 50 for ‘Increasing Australia’s renewable electricity generation’.

Use this order form to request brochures.

Both documents are also available as downloadable PDFs.

From 2001 to the end of 2010, the commodity in the market was called a “Renewable Energy Certificate” or REC.

From 1 January 2011 RECs were reclassified into two certificate types: “Large-scale Generation Certificates” (LGCs) and “Small-scale Technology Certificates” (STCs).

Small-scale technology certificates

Small-scale technology certificates (STCs) are created in the online REC Registry for correctly installed eligible solar water heaters, heat pumps, and small-scale solar panels, wind, and hydro systems.

One STC is equivalent to 1 MWh (megawatt hour) of:

• renewable electricity generated by the solar panel, small-scale wind or small-scale hydro system (unless the Solar Credits multiplier applies); or
• electricity displaced by the installation of a solar water heater or heat pump.

Large-scale generation certificates

Large-scale generation certificates (LGCs) are created in the online REC Registry by renewable energy power stations. One LGC is equivalent to 1 MWh (megawatt hour) of eligible renewable electricity generated above the power station’s baseline.

On 1 January 2011 the Register of Renewable Energy Certificates was split in two: the Register of Large-Scale Generation Certificates and the Register of Small-Scale Technology Certificates.

All RECs created between  2001 and 31 December 2010 were re-classified as LGCs and included in the Register of Large-Scale Generation Certificates.

Certificates created on or after 1 January 2011, for small-scale renewable energy systems installed before 1 January 2011, are created as LGCs in the REC Registry.

Certificates for solar water and small generation units installed after 1 January 2011 are created as STCs in the REC Registry.

Be aware that:

• Your customers may be signing over certificates for installations completed prior to 1 January 2011.  
• If this is the case, they will be created as LGCs and must be traded on the LGC market.  
• They cannot be traded through the STC Clearing House.  
• Please ensure this consideration is factored into your administration tasks, including financials and lead time for sale of certificates and/or receipt of monies.

Converting STCs to LGCs

A party to a contract that was entered into on or before 25 February 2010 and that meets all other eligibility criteria below may apply to the Regulator to have a certain number of STCs transferred under the contract each year (the annual transfer number) to be considered as LGCs.

To view the number aggregate for each year visit the Annual Transfer Number page.

The Clean Energy Regulator releases updates regularly and it is your responsibility to keep up to date with changes to delivery and processes regarding the SRES/LRET schemes.

Changes are notified in two major locations:

• Via email sent through the REC Registry.  Please ensure your email address is up-to-date in the REC Registry to keep receiving these messages.
• “Latest Updates” pages of the website.   This is on the front page and on the left-hand side of every page on the Clean Energy Regulator website.  Check the page regularly for updates.  You can also read updates via RSS feed.

As an agent you have the responsibility of educating your installers regarding their requirements under the Act. In many cases your installers will be responsible for gathering paperwork that you will need for certificate creation. This paperwork will also be essential if you are audited by the Clean Energy Regulator.

The Installer's section covers the legislated responsibilities for installers under the Act.

LGCs can only be sold through the open market.

STCs can be sold through both the open market and through the STC Clearing House.

• Outside of the STC Clearing House, the Clean Energy Regulator has no role in setting the value of STCs and LGCs. The value of the certificates is determined by supply and demand and may vary from buyer to buyer and from day to day.
• You can research STC/LGC prices by contacting companies in Australia that track the price of these certificates.  The Clean Energy Council website has LGC and STC spot prices on the front page.
• Some of these companies can also act as traders/brokers to purchase part or all of your supply of STCs and LGCs.
• The Clearing House is optional for both buyers and sellers.  You may use a combination of the STC Clearing House and the STC market to sell STCs, or you may choose not to use the STC Clearing House at all.

The following is not a comprehensive checklist, but should provide an idea of what you need to check before having STCs signed over to you. 

Solar water heater and heat pump checks:

• Is it under the prescribed capacity for the specific type of solar water heater or heat pump?  See Larger Systems
• Is it listed in the Register of Solar Water Heaters?
• Is the installer registered to provide the correct installation? See the Installers pages.
• Is the installation complete?  STCs cannot be created until the system is fully installed; that is, it is capable of generating hot water.

Small-scale solar panel, wind or hydro checks:

• Is it under the prescribed capacity for a system under the SRES?  If not, it may be classified as a Power Station.
• Is it eligible for Solar Credits?
• Has the STC entitlement been correctly calculated on the rating of the panels? Unless the inverter is rated less than the panels – see below.
• Is the installer registered to provide the correct installation? See the Installers pages.
• Are you able to get all the correct documentation for the installation?
• Is the installation complete? 

For more details on eligibility, see Creating STCs

The Clean Energy Regulator provides online calculators to assist with calculation of STCs for eligible installations. 

• Solar Water Heater calculator
• Small Generation Unit calculator
• How to do your own STC Calculations for small-scale solar panel, wind and hydro systems

Small-scale solar panel, wind, and hydro system STC entitlement             

STC entitlement is based on the panels unless the inverter is rated less than the panels.

• Note that Regulation 20 (1)(b) of the Act requires the rated kilowatts-peak (kWp) of the system is to be used to determine the number of certificates a solar PV system is entitled to.
• In the case where the rated output of PV array is equal to, or less than, the peak rated output of the inverter, then the rated output of the panels is to be used.
• In the case where the rated output of the PV array is greater than the peak rated output of the inverter, then to be eligible for certificates the system must comply with the recommendations stated in the Clean Energy Council’s Grid-connect Design Guidelines. 
• As per Regulation 20AC (5)(a)(iv) any non compliance with the CEC Code of Conduct (which includes all CEC guidelines) will be seen as an improper creation of certificates and may be failed.
• The Clean Energy Regulator regularly monitors and enforces these guidelines.

Your REC Registry account, and associated STC Clearing House account (if you have one) has a number of administrative requirements and roles.  You will need to be aware of usernames, passwords, and tasks performed by the account and users under the account, as those accounts are responsible for STCs/LGCs created by them.

• REC Registry account. The main account created for your company. You should only have one of these. It is legally responsible for all certificates created by the user/s associated with the account.
• REC Registry user/s. The individual login/s used to create certificates. There may be more than one, all associated back to the main account. One user is automatically created when the account is created; others need to be manually created by the account administrator.
• REC Registry account administrator. Generally the original user in the account. If there are multiple users, some or all of these can be set as administrators. There must always be at least one active administrator in an account.
• STC Clearing House Key User. This user is the one nominated to be responsible for all transactions performed in the Clearing House. The user can give permissions to other users of the REC Registry account to buy and sell STCs through the Clearing House, and change bank details in the Clearing House. If there is only one user of the REC Registry account, that user is automatically made the Clearing House Key user when Clearing House access is added to the account after POI has successfully been completed.

Information on these processes can be found in the REC Registry and STC Clearing House pages.

Be aware of the processes for:

• Managing STC Clearing House invoices
• Receiving notification of payments received
• How to approve placing orders internally
• Checks
• Reports

Information on these processes can be found in the STC Clearing House section.

If the information included in your original application to become an agent changes, you will need to update your details in the REC Registry. The process is as follows:

1. Log into the REC Registry using the administration username and password.
2. Select “My Account --> View my Contact Details”.

   

3. Click “Update Contact Details” at the bottom of the page.
4. Complete your new details.

   

5. Click “Save”.
6. You will be returned to the Account Overview with the message:

7. 

8. The details have now been updated.  Note that these details will not propagate across to other users of the account; they will need to log in separately and make their own changes.

You must give the Clean Energy Regulator permission to automatically withdraw and/or deposit funds into your nominated bank account if using the Clearing House. If your organisation requires a vendor creation form, please ensure it is supplied and approved prior to using the Clearing House to transfer STCs.

You must collect and retain all the necessary information to support certificate claims (including RECs, STCs, and LGCs) for a period of 5 years after the certificates are created.

From time to time the Clean Energy Regulator may request the following information:

• Completed STC Assignment Form
• Compliance paperwork, including written statements, for solar panel, wind or hydro installations
• Installation Report
• Invoice of system/unit
• Site audit of installation
• Photos of installation
• Statutory declarations.

The Clean Energy Regulator has no role in providing tax advice including providing advice on GST. The Australian Tax Office has made some determinations regarding STCs which are available at the register of Private Binding Rulings.  Search for the terms “REC”, “Renewable Energy Certificate”, “STC, “LGC” or similar.