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STCs & LGCs

STC: Small-scale Technology Certificate: Under the Small-scale Renewable Energy Scheme, eligible small-scale renewable energy systems are entitled to a number of small-scale technology certificates.

The number of certificates that can be created per system is based on its geographical location, installation date, and the amount of electricity in megawatt hours (MWh) that is:

  • generated by the small-scale solar panel, wind or hydro system over one or five years, or a single maximum deeming period, or 

  • displaced by the solar water heater or heat pump over the course of its lifetime of up to 10 years.

As a guide, one certificate is equal to one megawatt hour of eligible renewable electricity either generated or displaced by the system.

You can calculate the number of certificates a system may be eligible for using the  small generation unit STC calculator and   solar water heater STC calculator. 

The Renewable Energy Target is supported by an online registry system, called the REC Registry, which facilitates the creation, validation, auditing and transfer of certificates

Once created and validated, these certificates act as a form of currency and can be sold to recoup a portion of the cost of purchasing and installing the system, or transferred to other individuals and businesses at a negotiated price.

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LGC: Large-scale Generation Certificate: The nominated person for an accredited power station may create large-scale generation certificates (LGCs) for eligible electricity generated by the power station. Eligible electricity is electricity generated from the power station’s renewable energy sources.

One LGC can be created per megawatt hour (MWh) of eligible electricity generated by a power station. The amount of electricity generated by a power station is to be worked in accordance with the large-scale generation certificate general formula.

A nominated person can create LGCs by submitting a ‘claim’ for LGCs in the REC Registry. Once a claim for LGCs has been received, the Clean Energy Regulator determines the eligibility of LGCs created (this process is called the ‘validation’ process), and will register eligible LGCs in the REC Registry.

Registered LGCs can be sold or transferred to entities with liabilities under the Renewable Energy Target or other companies looking to voluntarily surrender LGCs. Liable entities are companies (mainly electricity retailers) that are required to purchase and surrender LGCs to the Clean Energy Regulator each year in fulfilment of their obligations under the  Renewable Energy (Electricity) Act 2000.

LGCs are sold to liable entities (and other companies or individuals) in the market at a price determined by agreement between those parties.