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LGCs and commercial solar

LGCs for commercial solar above 100 kW: when they still apply

Short answer

Before 1 October 2026, solar above 100 kW could not create STCs and the owner accredited a power station to create one LGC per megawatt hour. From that date, systems above 100 kW and up to 1 MW create STCs with a fixed five-year deeming period. Above 1 MW, LGCs still apply.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026 · For installers

When a business asked for a 150 kW rooftop system before 1 October 2026, the quote could not include an STC discount. The incentive worked differently and arrived slowly, through LGCs. For installs from that date, up to 1 MW, the quote can include an upfront STC discount. LGCs now matter mainly for older systems above 100 kW and for projects above 1 MW. The new band is covered in mid-scale solar STCs.

What changes

Up to 100 kW 100 kW to 1 MW, from 1 Oct 2026 Above 1 MW, or above 100 kW before 1 Oct 2026
Certificate STCs STCs LGCs
Timing Upfront at install Upfront at install As the system generates
Deeming Shortens each year (5 years for 2026) Fixed five years None, actual output
Accreditation Installer and product based Installer and product based Power station accreditation
Value per unit About $38 to $40 per STC About $38 to $40 per STC Roughly $6 to $9 per LGC in September 2026

Mid-scale applications open mid to late November 2026, according to the Clean Energy Regulator, so hold the claim until then.

Practical steps for the installer

  1. Check the install date and the system size before choosing the certificate pathway.
  2. For LGC projects, quote on the net system price, with LGCs as a separate stream for the customer.
  3. Tell the customer about accreditation, metering and registration costs.
  4. Decide who will manage the LGC process: the customer, you or a specialist agent.
  5. Make sure metering supports reporting from the first day of generation.
  6. Document the install to the standard the CER expects.

Steps are covered in how to create LGCs.

From the desk: Do not shape a design to fit a line. A 99 kW system and a 120 kW system installed after 1 October 2026 both get an upfront STC discount, so size to the customer's load and be clear about which scheme the quote assumes.

Talking to the customer

For a system installed before 1 October 2026 above 100 kW, a short script helps: ‘Because the system is above 100 kW and was installed before the new rules, it does not receive the upfront discount. Instead, you can register the system as a power station and earn certificates for every megawatt hour it generates. Those are worth less per unit but arrive for as long as the system runs.’ Pair that with a simple year-one estimate of generation and certificate income, so the customer sees the number and not just the concept. For newer installs up to 1 MW, show the STC count and the date applications open.

What this means for installers

Commercial customers often ask for the same “rebate” they heard about for homes. Set expectations by size and date: an upfront STC discount up to 1 MW from 1 October 2026, and a smaller ongoing LGC revenue above that. Other incentives for businesses are outlined in business solar rebates in Australia, and the STC trading page covers the upfront side. The resources hub has related guides, and the LGC value explainer covers the numbers.

Follow-up questions

People also ask

Where exactly is the line?
Small-scale solar is up to 100 kW with an annual generation limit. From 1 October 2026, solar above 100 kW and up to 1 MW also creates STCs, with a fixed five-year deeming period. Above 1 MW is large-scale and creates LGCs.
Can I split a big system into two small ones?
No. The Clean Energy Regulator looks at the system as a whole, and artificial splitting is a compliance risk. With mid-scale STCs available there is little reason to try.

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