The system for accessing Renewables Obligation Certificates and Levy Exemption Certificates is currently unworkable, with transaction costs exceeding the levels of benefits these policy measures can bring.

The Renewables Obligation

The law requires energy suppliers to source a proportion of their supply from renewable sources. This requirement is accompanied by a system of tradable certificates, known as Renewables Obligation Certificates. Because the system is designed for large generators, it is currently difficult for consumers to obtain access to the premiums energy suppliers are willing to pay for renewable energy. Considerable changes to the mechanisms for data collection and aggregation are needed before householders with renewable forms of microgeneration will be able to obtain access to the subsidies the renewables obligation can generate.

Climate Change Levy Exemption

Generation from both renewable and “good quality” Combined Heat and Power is exempt from the Climate Change Levy. Any exported electricity from household customers sold on by a supplier could also benefit from this exemption, creating a further benefit to customers installing microgeneration. Similarly, the mechanisms for data collection and aggregation settlement system require development.

We believe that the way to address this is by implementing the recommendations put to DTI by a number of reports from Jade Energy Ltd on streamlining access to ROCs, LECs and REGOs.

Further details on the Micropower Council’s recommendations for alleviating barriers associated with metering available here:-

Micropower Council’s recommendations

See further details on the