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Small generation units

Under the VRET scheme, householders and property owners installing small generation units (SGUs) are able to benefit financially from the trading or assigning of Victorian renewable energy certificates (VRECs).  VRECs for SGUs may be either created and traded by the owner of the system, or assigned to an agent. In assigning your VREC rights to the agent, the agent will be entitled to create and own the VRECs in respect of your installed SGU.

A device is defined as a SGU for the purposes of the VRET scheme if its energy source is:

• hydro and it has a kW rating of no more than 6.4kW and it generates no more than 25MWh of electricity each year; 
• solar (photovoltaic) and it has a kW rating of no more than 100kW and it generates no more than 250MWh of electricity each year; or
• wind and it has a kW rating of no more than 10kW and it generates no more than 25MWh of electricity each year.

A SGU is eligible for a deemed number of VRECs if it was installed in Victoria on or after 1 January 2007 and meets the requirements described above.

If the generation capacity of the system is greater than the above threshold, the system must be accredited as a power station by the Commission to be eligible for VREC creation. For more information regarding accreditation of a power station, please visit the Power stations page.

» VREC eligibility

» Assigning of VRECs

» Creating VRECs

» Small generation unit return

» SGUs - frequently asked questions