Side by side
STC vs LGC vs VEEC: which pays more, with a comparison table
In short
Per certificate, VEECs have recently traded well above STCs, and LGCs well below both. But a certificate price is not what a job pays: that depends on how many certificates the job creates, and which scheme the job qualifies for. Compare by job, not by certificate.
People ask which certificate “pays more” as if STCs, LGCs and VEECs were three prices for the same thing. They are not. Each is a different instrument, created under a different law, for a different kind of project, and sold to a different group of buyers. The useful comparison is what a given job earns, and that starts with knowing which scheme the job belongs to.
The three certificates side by side
| STC | LGC | VEEC | |
|---|---|---|---|
| Scheme | Small-scale Renewable Energy Scheme (federal) | Large-scale Renewable Energy Target (federal) | Victorian Energy Upgrades (state) |
| Regulator | Clean Energy Regulator | Clean Energy Regulator | Essential Services Commission |
| What it represents | Deemed renewable generation or displaced energy, up front | 1 MWh of renewable electricity actually generated | Greenhouse gas abatement from an energy upgrade |
| Typical project | Rooftop solar to 100 kW, home batteries, solar and heat pump hot water | Large solar and wind generators; solar above 1 MW | Heat pumps, efficient lighting, appliances and other upgrades in Victoria |
| Created | Once, at installation | Annually, as generation occurs | At the time of the upgrade |
| Recent price (at time of writing) | Roughly $38 to $40; clearing house ceiling $40 | Roughly $6 to $9 in September 2026 | Roughly $85 to $95 in 2026 |
| Scheme end | 31 December 2030 | 2030, with generation to then | Ongoing, subject to Victorian government settings |
Prices move. Treat the figures as the range seen in 2026, not a quote. Our own STC buy rate is on /pricing/.
Why price per certificate misleads
An STC is worth roughly $38 to $40, so a VEEC at $85 to $95 looks twice as valuable. But the number of certificates matters more. A 6.6 kW rooftop system in a zone 3 postcode such as Sydney or Brisbane creates its STCs once, in a single claim, using the zone rating of 1.382 and the deeming period of five years for a 2026 install. A Victorian upgrade creates VEECs only if the activity qualifies and the product meets the scheme’s specification. Different jobs, different counts, and the two schemes rarely compete for the same job.
LGCs are the clearest example. A single LGC is worth far less per certificate in 2026, because the market has been oversupplied. But a large generator creates LGCs every year it operates, so the income is a stream rather than a one-off.
What about “REC”, and the Guarantee of Origin?
“REC” is shorthand that means different things in different mouths. In Australian solar it most often means an STC, since installers deal in small-scale technology certificates. In the wholesale market it can mean an LGC. In international markets it means any renewable energy certificate. When you see “REC” in a quote or a contract, ask which instrument is meant.
The newer Renewable Electricity Guarantee of Origin (REGO) scheme, run by the Clean Energy Regulator, is a separate instrument again. It uses parts of the LGC framework, but it is a distinct scheme designed to continue beyond 2030, and a facility cannot use the same generation to create both LGCs and REGO certificates. For the LGC side, see our LGC and STC comparison for a 100 kW system.
Which one applies to you
- Rooftop solar up to 100 kW, home batteries and eligible hot water: STCs. Solar above 100 kW and up to 1 MW installed from 1 October 2026 also creates STCs under the extended scheme, with a fixed five-year deeming period; see /mid-scale-solar-stcs/.
- Solar above 1 MW and wind: LGCs.
- Victorian energy efficiency upgrades: VEECs.
For New South Wales certificates, see STC vs VEEC vs ESC.
A practical example
Consider three jobs. A 10 kW rooftop system in Sydney creates STCs once, in a single claim, and you are paid for them at a rate close to the $38 to $40 range. A 5 MW solar farm creates LGCs each year from metered generation, at a price that has been $6 to $9 in September 2026, and the income arrives over the life of the project. A Victorian heat pump installation creates VEECs, at roughly $85 to $95 in 2026, with the quantity set by the activity. The three are not competitors for the same work. If you are asking which to specialise in, ask instead which kinds of job you already do, and which certificates those jobs create. For a mixed business the answer is usually more than one, and the commercial work is in handling each correctly.
A fair verdict
On price per certificate, VEECs lead and LGCs trail, at the time of writing. On the question that matters to an installer, which is what a job earns, the answer sits with the job type and the number of certificates it creates. Use the STC calculator for solar and the battery STC calculator for batteries, and check the scheme page for anything state-based. For the basics of how we handle STCs and VEECs, see /stc-trading/, /veec-trading/ and the certificate trading glossary. The wider reference is at /glossary/.
How we wrote this. Energy Merchants is a certificate trader, so we have a horse in this race. Statements about other providers are taken from their own public websites on the date shown above and are attributed. If something here is out of date, tell the desk and we will fix it.
Sources: Clean Energy Regulator: Small-scale Renewable Energy Scheme · Clean Energy Regulator: Large-scale generation certificates · Clean Energy Regulator: Renewable Electricity Guarantee of Origin · Essential Services Commission: Victorian Energy Upgrades
Questions
Before you decide
Which certificate is worth the most?
Is a REC the same as an LGC or an STC?
Can one job create more than one type of certificate?
More comparisons
Keep comparing
Solar hot water vs heat pump: which is better in 2026
Solar hot water and heat pump water heaters compared for 2026: how each works, how STCs apply, running cost factors, climate and what to check before choosing.
VPP-capable vs VPP-enrolled battery: what the STC rules need
Why VPP-capable is not the same as VPP-enrolled for battery STCs, where enrolment is required (NSW BESS2, WA), and what to tell customers about retailer VPP plans.
Accreditation compared: VEU, NSW ACP, SAA and CEC for installers
VEU accreditation versus using an accredited provider, NSW Accredited Certificate Providers versus traders, and what SAA and CEC cover for solar and heat pump installers.
Compare us on the thing that matters: when the money lands.
Sign up, lodge one claim, and judge us on the settlement. No lock-in, nothing to cancel.