LGC creation (Large-scale Generation Certificate)

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

LGC creation is how a renewable power station turns electricity into certificates. Each Large-scale Generation Certificate represents one megawatt-hour (MWh) of eligible renewable electricity generated above the station’s baseline. The certificates are created in the REC Registry and then sold to liable entities.

The steps

1. Accreditation. The power station is accredited by the Clean Energy Regulator (CER). See power station accreditation.
2. Generation. The station generates and its output is metered.
3. Reporting. The owner or their agent submits generation data, usually after the end of a period.
4. Creation. The CER verifies and the registry issues LGCs, one per MWh. A 50 MWh month of eligible output is 50 LGCs.
5. Trading. The owner sells the certificates, often by contract, ahead of or after creation.

A worked figure

A solar farm that generates 12,000 MWh in a year, with no baseline deduction, can create 12,000 LGCs. The value then depends on the spot price. In 2026 LGCs have been oversupplied and cheap, roughly $6 to $9 in September 2026, after a low near $4 in February, so the same year’s output would be worth in the order of $72,000 to $108,000 at that range. Never use that as a current price. Check the market.

In practice

For small solar installers LGC creation is mostly a point of comparison. A rooftop system up to 100 kW earns STCs upfront. Larger projects, above 1 MW, earn LGCs over time. From 1 October 2026, systems above 100 kW and up to 1 MW can create STCs with a five-year deeming period instead. See mid-scale solar STCs.

The timing difference matters for cash flow. LGCs depend on actual generation, while STCs are paid on the deemed amount at the start.

Common confusion

LGCs and STCs are both products of the Renewable Energy Target, but they are created differently. See LGC definition and STC definition. Also, LGC creation is not the same as surrendering. A liable entity surrenders certificates to meet an obligation, as covered in certificate surrender.

See also /resources/ and the glossary.