Renewable Energy Certificates

STC's

A Renewable Energy Certificate is a measurement of renewable energy that can be traded or sold as an offset. These are created in addition to value of the electricity generated, making solar installations more affordable.

Australia's Renewable Energy Target (RET), requires energy retailers to purchase a set amount of certificates each year, so there is constant demand for these certificates.

The Small-scale Renewable Energy Scheme (SRES) is for all systems under 100kWp - generally comprised of residential & SME solar installs. The number of certificates is calculated based on the rating of the solar modules installed, the location & the relevant sunlight hours there, and a deeming period in years. Each certificate represents 1MWh of expected clean energy generation.

The scheme is legislated until 2030, so each year the number of certificates that can be created by installing a solar system will reduce, which means less discount off the purchase price. Currently the maximum deeming period is 13 years, for all installs completed in 2018.

Certificates are traded on the open market & therefore the value can fluctuate, they are quoted on the current value & may be adjusted on installation if necessary. Market STC value's have fluctuated somewhat in recent times, as can be seen below.

Each solar panel installed can have STCs claimed only once, though the LGCs - the Large-scale Renewable Energy Scheme - may be claimed from the new generation capacity, if over 100kWp of solar capacity is installed at the same site in future. These will also be paid until 2030, but are based on actual generation measured from the system & issued quarterly or bi-annually.

Renewable Energy Certificates

LGC's

A Renewable Energy Certificate is a measurement of renewable energy that can be traded or sold.

Australia's Renewable Energy Target (RET), requires energy retailers to purchase a set amount of certificates each year, so there is constant demand for these certificates. 

The Large-scale Renewable Energy Target (LRES), is for systems above 100kWp. One LGC is equivalent to one megawatt hour of generation, as recorded by an approved LGC meter (installed by Quality Energy in conjunction with the solar system).

Under the existing scheme, LGCs can be claimed monthly, quarterly or yearly & are sold to create an ongoing renvenue stream for [[Customer Company Name]], until the conclusion of the scheme at the end of 2030. It is currently expected that after 2020 no more installations will be added to the program, for the remaining 10 years, while those already in place will continue to receive the income stream.

LGC values fluctuate with market supply & demand; future values are estimates only, based on industry standard recommended projections: