Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs) Explained
Australia’s Renewable Energy Target (RET) scheme uses two certificate schemes, small-scale technology certificates (STCs) for small systems and large-scale generation certificates (LGCs) for large power stations, to drive clean electricity uptake to 2030. Both certificates represent renewable electricity and can be created and traded under rules administered by the Clean Energy Regulator. With 2030 approaching, timelines, LGCs, STC deeming period, and liability settings matter more than ever for households, businesses, and developers. Read on to learn more.
What are STCs?
STCs are one of the renewable energy certificates, created under the Small-scale Renewable Energy Scheme for eligible small systems like rooftop solar, solar water heaters, wind, hydro, and air-source heat pumps. Each STC equals one megawatt-hour of renewable electricity generated or displaced by the system.
System owners can create and sell STCs or assign them to an agent for commercial solar energy benefits like an upfront discount, making installations more affordable.
STC Eligibility and Sizing
Small-generation units are generally solar PV up to 100 kW capacity and less than 250 MWh annual output, with specific thresholds for small wind and hydro. Eligibility depends on correct installation, approved components, and meeting scheme rules under the Renewable Energy (Electricity) Act and Regulations. Most small systems will qualify under SRES, while larger systems may be classified as power stations and fall under the LRET.
How are STCs Calculated
These renewable energy certificates are awarded based on expected generation up to the scheme end and are “deemed” upfront using official calculators and zone ratings. The deeming period reduces by one year each year and ends in 2030, which steadily lowers STC counts available for new installs. This means earlier installation generally yields more STCs than waiting closer to 2030.
Creating and Selling STCs
STCs have to be created in the REC Registry within 12 months of installation or entitlement lapses. They can be sold on the open market or via the Clean Energy Regulator’s STC Clearing House. The Clearing House facilitates exchange at a fixed price of $40 per certificate, excluding GST.
The Small-scale Technology Percentage (STP) sets how many STCs liable entities must surrender annually, creating reliable demand. The STP is set each year to balance expected STC supply and liable electricity acquisitions. These settings aim to keep the market functioning as it deems tapers toward 2030.
What are LGCs
LGCs are created under the Large-scale Renewable Energy Target (LRET) by accredited power stations, such as wind and solar farms. Each LGC equals one megawatt-hour of eligible renewable electricity that is generated and fed into the grid above any baseline. Power stations create LGCs periodically as they generate, rather than up front.
LRET Targets and Obligations
The RET sets an annual large-scale target of 33,000 GWh from 2020 to 2030, held constant to the scheme’s end. Liable entities, mostly electricity retailers, must surrender LGCs each year as determined by the Renewable Power Percentage. This obligation maintains ongoing demand for LGCs in the LGC trading market through 2030, alongside any voluntary buyers.
How LGCs are Calculated and Traded
Accredited stations create one LGC per MWh of eligible renewable electricity, calculated under regulations and metering rules. LGCs can be sold to liable entities for compliance or to voluntary buyers supporting renewable claims. Trading occurs through the REC Registry and secondary markets, and the prices are set by supply and demand.
The 2030 Deadline
Under current legislation, the RET’s core frameworks operate to 2030, with final liability acquittal due in February 2031. For small systems, the deeming declines annually and ends in 2030, which directly reduces STC counts over time. Post-2030, the government is developing a Renewable Electricity Guarantee of Origin framework to support continued certification.
Why Acting Now Matters
Installing earlier locks in a longer deeming period and more STCs, while waiting, reduces the certificate count. Developers can accelerate accreditation and commissioning to maximize LGC creation within the 2030 window. Both pathways benefit from predictable surrender settings that persist through scheme end.
Steps to Capture Value
- Confirm System Classification: Small-scale under SRES or large-scale under LRET, based on capacity and annual output.
- Use official calculators and methods to estimate STC or LGC creation and timing.
- Choose a Certificate Strategy: Assign to an agent for an upfront discount or manage creation and trading directly.
Compliance and Market Signals
For STCs, meet the 12-month creation window and keep accurate records to avoid failed certificates. For LGCs, ensure accreditation, metering, and data submissions align with eligibility formulas. Retailer obligations via STP and RPP sustain certificate demand to 2030, supporting investment decisions now.
The clock is ticking
STC deeming falls every year to 2030, and LGC obligations run to final acquittal in early 2031. You must make informed moves now, size systems correctly, use the calculators, and lock in certificate value while the window is open. For tailored guidance and execution, talk to Melbourne Energy Group.
Our expert partners streamline eligibility, documentation, and trading choices so your projects move faster and are de-risked. And they align installation schedules to maximize deeming for STCs or output profiling for LGCs. For tailored guidance and execution, talk to Melbourne Energy Group today.
Let’s talk solar
Get in touch to get a quote or see how Melbourne Energy group can help. Call our Melbourne office on (03) 8909 9230.
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