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

• 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

LGC

• 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.