The Federal Government provides support for all forms of renewable energy – For the most current information: SEE HERE

STC – Small-scale Renewable Energy Certificate

The Small-scale Renewable Energy certificates (STC) are for Residential and smaller commercial systems <100kW – This is created at point of commissioning calculated over an assumed 15 years.
STCs are calculated based on the expected output of the solar system over a 15 year period. These are available after commissioning of the solar PV system.

STCs are like are like a renewable energy currency, the value fluctuates with supply and demand.

If a Solar PV system is commissioned in 2017 the deeming period is 14 years for STC. (2018 = 13 years etc.).

For systems we commission 2016 the period is 15 years. So we calculate in the following way: kW x 1.382 x 15 years = Volume of STC

In effect, this provides an up-front discount for those who purchase solar systems for their homes or businesses.

LGC – Large-scale Generation Certificate

What are they?

LGCs are created on a yearly basis based on the actual amount of power generated by an accredited and registered renewable energy power station. An LGC represents one megawatt hour (MWh) of net renewable energy generated and exported to the electricity grid by a solar PV system more than 100kW, or more than 250MWh.

Under the Large-scale Renewable Energy Target, the large-scale generation certificate (LGC) eligibility formula is used to determine the amount of generated electricity eligible for large-scale generation certificates.

See the Australia Government explanation for more information and current information: MORE HERE

An important difference between STCs and LGCs is that LGCs are produced on an ongoing basis after the system is accredited, installed, and producing power. Large-scale generators therefore provide an ongoing revenue stream for their operators. As with STCs an LGC is a tradable unit that acts as a currency for renewable energy, and prices therefore fluctuate with supply and demand.

Who is eligible?

A power station may be eligible for accreditation under the Large-scale Renewable Energy Target if it meets all the eligibility requirements outlined in the Renewable Energy (Electricity) Act 2000, including:

  • some, or all of the electricity generated by the power station is from an eligible energy source, and
  • it complies with all Commonwealth, state, territory and local government planning and approval laws.

Applicants must provide relevant documentation to demonstrate compliance at the time their application for accreditation is lodged with the Clean Energy Regulator.

Whether you generate electricity to feed into the national electricity grid, for use by a business or factory, or for consumption within the power station itself—you are eligible to apply for large-scale generation certificates.

Renewable energy power stations that operate in the national electricity market (NEM) must use NEM standard metering. If a power station is not in the NEM it must use approved metering that allows the Clean Energy Regulator to determine the amount of eligible electricity generated by the power station.

Trading History

How does it work?

Each whole megawatt hour of eligible electricity generated above the power stations baseline is entitled to one large-scale generation certificate.

The large-scale generation certificate eligibility formula is:

TLEG – [(FSL + AUX) + DLEG x (1 – MLF)]

TLEG is the total amount of electricity, in megawatt hours (MWh), generated by the power station in the calendar year—measured at all generator terminals.

FSL is the total amount of electricity in MWh generated by the power station comprised of ineligible energy sources, such as fossil fuels. FSL will only apply to power stations that use a combination of fossil fuels and renewable energy sources to generate electricity. Where a mixture of renewable and fossil fuels is used, the fossil fuel component must be netted from the generation output, as it is not eligible for large-scale generation certificates.

AUX, or auxiliary loss is the electricity used in the process of generating electricity, and electricity used in the operation and maintenance of all components of the power station. Auxiliary loss is not eligible for large-scale generation certificates.

When available, metered data should be used to calculate auxiliary loss, and when metered data is not available, a proportion of the total output (which has been identified and agreed with the Clean Energy Regulator in advance) may be used.

DLEG is the net eligible electricity generated and exported to a distribution network, transmission network or a point of use.

MLF, or marginal loss factor, is applied to the amount of exported electricity to allow for electricity losses in transmission networks.

MLF is calculated for each power station by the Australian Energy Market Operator in the National Electricity Market (NEM) regions. Power stations not located in a NEM region should contact their State or Territory government for this information.

Note: if all of the electricity generated by a Renewable Energy Target power station is used within the power station and/or the local distribution network, the MLF value is taken to be 1.


What’s great about the feed-in tariff is that I can now go on holiday and my roof is still earning for me!

Solar power had been very expensive until the government more

Fraser, Balmain

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