In Australia, we have 2 types of Renewable Energy Certificates (known as RECs) that work to incentivise homeowners and businesses to install solar power systems:

  • Small-Scale Technology Certificates (or STCs), which are accessible if you’re installing an eligible system less than 100kW in size. 
  • Large-Scale Generation Certificates (or LGCs), which are accessible if you’re installing an eligible system more than 100kW in size. 

Both certificates are essentially traded in for a discount/rebate on the eligible solar installation, though there are differences between the two. 

  • STCs are available upfront at the time of installation. They are based on the energy that your system is expected to generate over time. STCs are generally traded by your solar installer, which means you don’t need to do anything and instead they’ll give you a discount on what they charge you for the system; pretty simple.

  • LGCs are created over time after the renewable energy is actually generated by your system. The generation is usually measured by a meter that’s installed with the system; so, when the meter is read and your LGCs are created based on that reading, you can trade them in for a nice cash reward and make some money back on your system on a consistent basis. Large solar system owners tend to trade their LGCs monthly, quarterly or yearly depending on what suits them.

Both the STC and LGC programs are being phased out over time, with discount amounts being reduced yearly until 2030; a great reason to get your system in sooner rather than later. If you’re keen on installing solar, get 3 free quotes from installers by filling out the form below. 

Get 3 commercial solar proposals today.

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