Today's rateSTC $38.50·VEEC $60.00Rate card

LGCs, mid-scale and commercial solar

Is an LGC worthwhile for a solar farm under 1 MW?

Short answer

Mostly not now. Systems above 100 kW and up to 1 MW installed from 1 October 2026 create STCs with a fixed five-year deeming period, which avoids accreditation and metering. LGCs also trade at about $6 to $9 in 2026, so fixed costs hurt small stations.

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

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.
From the desk: run both numbers, STC discount at install versus modelled LGC revenue after fees, and put them in the quote. Customers can understand a table faster than an explanation.

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.

Follow-up questions

People also ask

Can I still choose LGCs for a 500 kW system?
For systems installed from 1 October 2026, the STC route applies in the 100 kW to 1 MW band. Existing accredited stations keep their status. Check with the CER for edge cases.
What if I installed before 1 October 2026?
Earlier systems follow the rules that applied when they were installed. Ask the CER or an adviser about your case.
Is an LGC worth more than an STC?
Per certificate, the figures are not comparable. One STC is a deemed MWh up front, one LGC is a metered MWh over time, and LGC prices are low in 2026.

Got a claim to lodge this week?

Sign up today. Your account manager calls with your rate card and your first claim can be settled within days.

Call the deskStart trading