STCs and LGCs
The Federal government of Australia has defined a target of 33000 Gigawatts as per the policy for renewable energy. This accounts for 23.5% of Australia’s total electricity generation.
This target of renewable energy includes both the Large Scale Renewable Energy Target (LRET) and Small Scale Renewable Energy Scheme (SRES).
- STCs are termed as Small Scale Technology Certificates.
- STCs are eligible for small scale renewable energy installations under 100 kilowatt.
- STCs are generated by a small scale solar panel, wind or hydro system over one or five years, or a single maximum deeming period.
- 1 STC is equal to 1 megawatt-hour of eligible renewable electricity either generated or displaced by the system
- LGCs are termed as Large Scale Generation Certificates.
- LGCs are eligible for large-scale renewable energy installation above 100 kilowatts.
- 1 LGC can be created for each megawatt-hour of eligible renewable electricity produced by an accredited renewable power station.
- LGCs can be sold to Electricity retailers who surrender them annually to the Clean Energy Regulator.
- LGCs are issued and produced on an ongoing basis.
- LGCs acts as currency for renewable energy and prices fluctuate with supply and demand.
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