SRECs (also referred to as STCs) relate to small-scale renewable energy certificates which are typically created from domestic PV (solar electric), solar hot water and heat pump installations and commercial solar electric systems up to 100kw in size.

SRECs can be traded either on the “spot” market which is a supply and demand driven market where prices fluctuate depending on the requirements of the liable parties who are required to purchase these.  Each liable party has a quarterly target to meet and is required to purchase and surrender RECs back to the Clean Energy Regulator to fulfil that target.

SRECs can also be traded through the Government’s Clearing House where sellers can expect to receive a guaranteed wholesale price of $40 per certificate.  This is a wholesale price and customers looking to use the services of a registered agent can expect to received something below that price.  

It is important to bear in mind when considering using the Clearing House system for payment that there is no guarantee on when certificates will be purchased from the Clearing House as, if liable parties are able to purchase their quarterly requirements from the spot market at less than $40, that is what they will do.  The Clearing House will only begin to clear if there are no certificates available on the spot market and it is conceivable that the certificates could sit in the Clearing House for a considerable and indefinite time period before being purchased.    Interested parties can view the Clearing House transfer list by clicking here.