RECs, STCs & LGCs


REC: Renewable Energy Certificate

STC: Small-scale Technology Certificate

LGC: Large Generation Certificates

Note: STCs will be scaled back from 31.12.16 by about 7% p.a. The result will be lower STCs and quite possibly lower STC values (from about September 2016 to March 2017) as installations are expected to peak and there will be an oversupply of STCs.

What is a REC? what is an STC?

All major wholesalers, retailers and generators of electricity are required by law to purchase certain minimum amounts of RECs per annum (from 2011 onwards, these will be STCs for small-scale systems and LGCs for large-scale generation systems). Each MW of installed renewable energy represents one certificate. A 1kW system, working an average of 3.5 sun-hours a day in Melbourne, would generate the equivalent of 17 certificates for a period of 15 years. Note in actual fact, sun-hours closer to 3.6 are realised.


This formula varies from state to state due to the different levels of average sunlight that each state receives. Consequently, NSW receives more STCs than Victoria which, in turn receives more than Tasmania.


A multiplier of 2 - 5 used to be offered for the first 1.5kW of system. However due to the continued reduction in system prices, this multiplier has been phased out. Consequently, there is no longer a multiplier.

Prior to 1st Jan 2011, RECs had been bought and sold in a REC Market at prices determined by supply and demand.

From 1st Jan 2011, RECs (or STCs as small-scale systems’ certificates will henceforth be known) can be sold either through a Clearing House, at a sum of $40 (a figure, which the Minister of Energy can change) subject to queuing up and waiting your turn – a process that can take a considerable period of time, or through the STC Market, which operates very much like the old REC Market – demand and supply. Prices in this market are expected to be significantly lower than the $40 mark and vary from time to time.

 

We recommend you contact iEnergytech for up-to-date information on certificate pricing and market conditions.

Given the volatile nature of the STC market, iEnergytech will not be held responsible for any losses incurred on the basis of information presented here.

LGC: Large Generation Certificates:

These are available on systems of 100kWp and greater in size. The number of LGCs available is based on the net energy produced by the system measured in MWh (1MWh = 1LGC/p.a). The value of the LGC is based on market rates and typically ranges from about $60 - $85 per LGC.

Note, iEnergytech will not accept any liability for losses incurred due to decisions made based on information stated here. The RET, STCs' and LGCs' structure and programme is in a constant state of change and customers are advised to seek the latest information beforehand.

iEnergytech is a registered STC agent and is able to handle all the paperwork relating to the generation and claim of your STCs.

 

 

 

 

 

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