Every LGC is eventually surrendered by a liable entity, usually an electricity retailer, to meet its Renewable Power Percentage obligation under the Renewable Energy Target. The question for a small owner is how to reach that end buyer without a team to do it.
The main buyer types
- Electricity retailers and large energy users. They need certificates every year. They buy in size, so a 200 kW system’s output (a couple of hundred certificates a year) is small for them.
- Certificate traders and brokers. They aggregate parcels from many small owners and sell them on, taking a margin or a fee. This is the usual route for owners of small stations. See what an LGC trader does.
- PPA counterparties. If a developer owns your system under a power purchase agreement, they may own the certificates too. See LGCs, PPAs and ownership.
- Corporate buyers. Some businesses buy certificates to voluntarily match renewable claims, usually through a broker.
What to compare
| Factor | Question |
|---|---|
| Price basis | Spot, fixed or indexed to a published price |
| Payment timing | Days after transfer, and who initiates it |
| Fees | Registry transfer and broker margin |
| Volume | Minimum parcel size |
| Counterparty risk | Who the buyer is and how they pay |
Check the market on the LGC price page. The spot price was roughly $6 to $9 in September 2026 after a low near $4 in February, so a contract signed at the bottom may look poor later and vice versa.
Be sure it is the right scheme
Before chasing an LGC buyer, check whether your system should be on a different path. A system installed from 1 October 2026 between 100 kW and 1 MW can use the new mid-scale STC rule and sell upfront certificates through an STC trader, rather than selling LGCs year by year. See claiming LGCs and STCs together.
If you only generate a few hundred LGCs a year, the simplest route is usually a standing arrangement with one trader who creates and transfers certificates for you and pays on a set day each quarter. Larger or more price-sensitive owners may split volume between a fixed-price contract and the spot market to spread the risk.
What this means for you
Small owners should pick a buyer on transparency and payment terms, not the biggest headline figure. For STCs from small-scale and mid-scale systems, Energy Merchants publishes a daily rate on pricing and explains the process on STC trading. More on commercial solar sits in the LGC and mid-scale hub, and the glossary entry for LGCs covers the basics.