For years the choice for a commercial or small-farm solar system between 100 kW and 1 MW was awkward: too big for STCs, often too small to make LGC accreditation pay. Reform has largely settled it for new systems.
What changed on 1 October 2026
The Small-scale Renewable Energy Scheme now extends to mid-scale solar. Systems above 100 kW and up to 1 MW installed from 1 October 2026 create STCs with a fixed five-year deeming period, after the Renewable Energy (Electricity) Regulations were amended in 2026. The CER says applications open mid to late November 2026. Above 1 MW stays with LGCs, and below 100 kW nothing changes. The detail is on our mid-scale solar STC page.
Why LGCs struggle below 1 MW
- Fixed costs. Accreditation, metering, registry work and trader margins do not scale down. See fees and commissions.
- Low prices. LGC spot has been roughly $6 to $9 in September 2026 after a low near $4 in February.
- Slow cash. Revenue arrives over years from metered output, rather than at install.
- Wind-down. Compulsory demand ends in 2030: see LGCs after 2030.
Why STCs usually win
STCs are deemed up front. With a fixed five-year deeming period, a 500 kW system can see a significant discount at installation, which improves the project’s payback straight away. There is no accreditation, no interval metering for certificate purposes and the claim goes through the trader. For installers, it also changes how you quote commercial jobs: see how the 1 MW expansion affects installers.
Edge cases
- Systems installed before 1 October 2026. Different rules may apply.
- Staged developments. Splitting a large project into pieces to fit under a threshold is not safe. Seek advice.
- Off-site or exported farms. The rules look at system capacity and installation, so confirm your configuration.
What this means for owners and installers
If you are designing a 100 kW to 1 MW system now, assume STCs and check your timing against the 1 October 2026 start. If you are developing above 1 MW, treat LGCs as modest revenue: see LGC forward prices. Read LGC or STC for a 100 kW system for the earlier decision logic, and when you are ready to monetise STCs see pricing and start trading.