This article is an updated piece from our original article outlining the value of ACCUs and their growing trend over 2021.
The spot price for Australian Carbon Credit Units (ACCUs) has reached a record high, with the price climbing to $55.25/t CO2, a 60% increase on our last article in late October and a tripling on prices seen in early 2021.
The Clean Energy Regulator uses ACCUs as the unit issued to represent one tonne of carbon dioxide equivalent (tCO2-e) stored or avoided by a project. ACCUs are earned by registered parties for emissions avoidance or storage of carbon dioxide in vegetation and soil.
Why is this relevant to onsite solar?
Onsite solar directly reduces CO2 emissions at a site by limiting the electricity consumption from the grid and doing so at a lower cost. Due to onsite solar delivering both financial benefits and emissions reduction, it can be said to have a negative CO2 abatement cost. The negative abatement cost of onsite solar makes it a far more commercially superior way to cut down on emissions comparted to purchasing costly environmental certificated such as ACCUs. Certificated earned from onsite solar can alternatively be monetised to increase commercial benefits.
A key supportive factor for the growth ACCU market prices is the increasing momentum for the achievement of net-zero emissions targets. Verdia offers a range of renewable energy services which can help you reduce emissions or meet net-zero goals while simultaneously delivering energy savings and increasing operations resilience.
Contact us if you would like to know more about our renewable energy services and how they can help you achieve your critical business goals.