REC’s or Renewable Energy Certificates are the current form of the Australian Federal Governments renewable energy rebate scheme called “solar credits”.
The REC is a measurement of renewable energy which is traded.
An important point is 1 STC = 1 REC, they are the same power value. The difference between them is how much they can be sold for.
All solar panel systems must be installed according to the requirements of the Small Scale Renewable Energy Scheme in order for them to be eligible for small-scale technology certificates (STCs). These certificates can be assigned to a registered Agent such as a retailer or installer in exchange for a financial benefit, such as a discount off the invoice.
The current STC price sits at around $30, but has fallen as low as $16 and has been as high as $42.
As STCs are created based on the expected output of the system they can be created as soon as the system is installed. The system does not need to produce any power before its STCs are created.
In effect, this provides an up-front discount for those who purchase solar systems for their homes or businesses, as installers usually assume the responsibility for creating the STCs as well as the risks associated with holding onto or selling them.