What is a REC?
A Renewable Energy Certificate is just like a share in a Company. The Government grants you a number of RECs for your solar installation as its way of thanking you for helping to tackle Climate Change. These RECs have a market value which fluctuates, if not daily, at least weekly. And you can decide to hold onto them as your rainy day fund or to sell them at the going rate. If you choose to sell your RECs they will be purchased by industry and offset against their fossil fuel usage or carbon generation…
The Solar Credits Scheme
The Solar Credits scheme has been introduced by the government as part of the revised RET (Renewable Energy Target). Solar Credits, also known as the REC multiplier allow 5 times the amount of RECs to be created for eligible small generation units (small-scale solar PV, wind and hydro). Credits are not means tested, so anyone who meets the eligibility criteria can claim Solar Credits. The Solar Credit multiplier will decrease over time. The 5x multiplier will exist until 30 June 2012, and then it drops each year to 4x, then 3x, then 2x and ends in June 2015.
Link for above Solar Credits