Creating And Selling Certificates

Most energy savings certificates are traded by direct contract between the LED Lighting Retailer/Installer with an Accredited Certificate Provider. ACP’s trade the certificates for and on behalf of LED Retailers such as PURAURA.

They have their own processing fee to action this and the turnaround time for processing is typically 10-20 business days. Contracts and prices vary and there are currently no standard contracts or a recognised exchange for trading energy savings certificates.

The most common way to turn the certificates into the upfront discount provided to end users) the business owner as the lighting upgrade receiver is the spot rate of value.

This means that once all the evidence (Paperwork, Geo tagged photos, Lighting diagrams, etc) have been processed, the spot rate is the rate on the day the certificates are valued at, and subsequent monies are exchanged from the ACP, minus their processing charge, to the retailer/installer.

There is a huge risk to LED Lighting installers and retailers as if the certificate value drops to far, then the whole equation means that typically, the retailer receives less than what was provisioned for in the LED Lighting agreement and solution, however, in the interest of removing as many barriers to upgrading as possible, the retailer may build in a slight margin of movement in to their pricing to compensate for a fall in certificate values from solution delivery, to Installation and subsequent processing and payment.

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