Solar is getting increasingly popular in Singapore. Recently, the government even installed one of the largest solar fields in Asia at Tengeh Reservoir! If you’re already in the renewable energy space with your own home solar panel setup, you might be wondering, “what else can I get out of my solar panel system?”. Well, Renewable Energy Certificates (RECs)! Read on to find out what exactly RECs are and why you should get them in Singapore.
Renewable Energy Certificates (RECs): The Basics
Let’s begin with an explanation of what Renewable Energy Certificates or RECs are.
To put it short and simple, RECs are tradable assets that quantify the energy generated by renewable energy sources like solar panels and wind turbines. Think of it like credits that your solar panel setup can continually generate to be sold for a profit. This might still sound very vague and unclear, fret not, we’ll explain further!
Acquiring RECs is not the same as buying green electricity. Instead, it merely represents quantifying the clean energy attributes of the electricity generated from a renewable energy source. This means that to procure RECs for sale, you’ll first need to own a renewable energy generation source — in Singapore, this will typically be a solar panel system.
Conventionally, one REC is produced when a renewable energy source generates 1 megawatt-hour (MWh) of electricity. This means that you’ll be able to acquire 1 REC per 1 MWh of clean energy that your solar PV system generates. The REC then helps to certify that you’re the owner of the REC and your solar panel setup successfully generated 1MWh of clean electricity.
Why Acquire and Sell RECs?
RECs are usually bought up by companies. These enterprises purchase RECs in bulk as a form of carbon credit to offset carbon emissions from their campuses and offices. They often do so to meet their sustainability goals. Companies that buy RECs are also not geographically limited, this means that you’ll be able to sell your RECs online to companies overseas as well!
With many countries around the world — including Singapore — introducing stricter regulations on carbon emissions, more companies will need to ensure that they are meeting sustainability regulations. Overall, this is great for REC sellers like yourself: more demand means more profit!
How much are RECs worth?
The price of RECs fluctuates based on demand and supply. That said, they usually fall within a constant range. As of mid-2021, the price of 1 REC in Singapore can fetch you between USD$15 and $25.
If you’ve made the right calculations, getting RECs can be one of the top solar financial benefits in Singapore! What’s more, you’ll still be able to enjoy your usual monthly utility bill savings from your solar setup.
Selling RECs in Singapore
Here comes the challenging part, acquiring and selling RECs in Singapore. Trading RECs in Singapore is a tiresome and hands-on process with many hidden costs. In our step-by-step guide to selling RECs in Singapore, we run through all the important points that you need to take note of at each juncture of the REC sale process.
Do you have a solar panel setup and want to acquire and sell RECs? Don’t have the time to do so on your own? Let Solar AI sell your RECs for you. We simplify the long and tedious REC sales process into 1 simple step. All you’ll need to do is provide us with authorisation to sell your RECs on your behalf and you’ll be able to sit back and enjoy consistent monthly earnings from your REC sales!
Get an Instant Solar Estimate for your Property Now!
Whether you’re ready to install solar panels on your rooftop, or just wondering how you can benefit from solar, use our instant solar assessment tool to get an estimate of the solar potential of your property and find out how much you can save. At Solar AI, we combine geospatial analysis of satellite imagery with big data and artificial intelligence to provide you with reliable and accurate solar information so that you can make a better solar choice!