Australia's Renewable Energy Target scheme creates a financial instrument every time an eligible solar, wind or hydro system generates — or, in the case of STCs, every time a qualifying small-scale system is installed. For most residential customers these certificates are assigned to the installer at point of sale in exchange for a point-of-sale discount, which is the simplest path but rarely the highest-value one. For commercial and industrial system owners, and for any customer who wants to retain and trade their own certificates, active management of the REC position produces meaningfully better outcomes over time.
The certificate market in 2026 is more liquid and more transparent than at any earlier point in the scheme's history, but it is not frictionless. STC spot prices fluctuate within the year in response to installation volumes, the clearing-house schedule and the liable entities' compliance positions. LGC prices are driven by the Large-scale Renewable Energy Target annual surrender obligations, the forward contract market and the emerging voluntary procurement demand from corporate buyers pursuing Power Purchase Agreements with Renewable Energy Guarantee of Origin (REGO) certification. Navigating these dynamics requires market access and daily price visibility that most system owners do not have independently.
Certificate types and how they are created
- Small-scale Technology Certificates (STCs) — created upfront for eligible systems under 100 kW, based on projected fifteen-year generation; price set by clearing-house floor ($40) or market, typically $35–$40 in 2026
- Large-scale Generation Certificates (LGCs) — created monthly by accredited power stations above 100 kW based on metered actual generation; price set by bilateral or spot market, typically $50–$75 in 2026
- Renewable Energy Guarantees of Origin (REGOs) — newer instrument under the expanded scheme, providing hourly-matched generation provenance for voluntary corporate buyers
- International RECs (I-RECs) — available to eligible exporters; Zenith brokers these for clients with cross-border corporate sustainability commitments
- Carbon offset interactions — LGCs and ACCUs can be held simultaneously under current rules; Zenith advises on combined certificate strategies where applicable
- Deemed generation top-ups — for systems with metering anomalies or extended outages, Zenith manages Clean Energy Regulator remediation to recover lost certificate entitlement
Registration and compliance
Before any certificate can be created or traded it must be registered with the Clean Energy Regulator. For STCs the registration window is limited to twelve months from installation; certificates not registered within that period are forfeited permanently. For LGCs the power station must be accredited under the RET scheme — a process that involves metering configuration, network connection documentation, and a CER audit — before any generation is eligible. Zenith manages registration for both certificate types as a standard part of the brokerage engagement, and we chase the documentation actively rather than waiting for it to arrive.
For large-scale accreditations in particular, the quality of the initial application has a direct bearing on the time to first certificate and the accuracy of the ongoing metered entitlement. Errors in metering configurations, boundary definitions or eligible generation calculations create reconciliation problems that can reduce certificate yield for years after commissioning. Our registration team has managed more than 140 large-scale accreditations and knows the common failure modes well enough to prevent rather than remediate them.
Timing the market: when to sell
The default in the solar industry is to sell STCs at the point-of-sale clearing-house price and to convert LGCs to cash as quickly as they are created. This is low-friction but leaves price optionality on the table. STC prices have historically been highest in the first quarter of each calendar year as liable entities position ahead of their February surrender deadlines; selling into that window rather than at install date can add several dollars per certificate for large commercial systems. LGC prices are more responsive to forward RET compliance signals, corporate PPA demand and new capacity announcements — there are windows in the annual cycle where the forward price for twelve-month delivery is materially above the spot price.
Zenith's brokerage desk holds bilateral relationships with the major liable entities, electricity retailers and corporate sustainability buyers active in the Australian REC market. For clients holding more than 500 LGCs or more than 2,000 STCs in a single transaction, we run a structured price discovery process across multiple counterparties rather than accepting the first indicative bid. The difference between a negotiated bilateral trade and an unsupported clearing-house submission can be two to five dollars per certificate — material at scale.
Frequently asked
Can I hold my STCs rather than assign them to the installer?
Yes. You can retain your STC entitlement and sell independently through a registered agent or directly to the clearing house. Zenith will register your certificates, manage the clearing-house lodgement schedule and, where market conditions support it, negotiate bilateral sales at above-clearing-house prices. The administrative overhead is worth it for systems creating 500 or more STCs.
How often are LGCs created and when do I get paid?
LGCs are created monthly based on metered generation submitted to the CER. Once registered they can be transferred and settled within days. Under a Zenith brokerage agreement we sell on your behalf on a monthly or quarterly schedule depending on your preference and the prevailing market conditions, with settlement typically within five business days of transfer.
What is the difference between an LGC and a REGO?
An LGC confirms that a megawatt-hour of renewable electricity was generated and fed into the grid but does not specify when. A Renewable Energy Guarantee of Origin (REGO) attaches generation to a specific hour, enabling corporate buyers to match their consumption hour-by-hour with renewable generation. REGOs command a premium from corporate buyers with time-matched procurement commitments and are increasingly required under the Climate Active carbon-neutral standard.