Large-scale Renewable Energy Target (LRET)

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

The LRET, or Large-scale Renewable Energy Target, is one of the two halves of the national Renewable Energy Target. It applies to accredited power stations such as wind farms, large solar farms and hydro, which create Large-scale Generation Certificates, or LGCs, for each megawatt hour of eligible renewable electricity they produce.

How it works

Liable entities, mainly electricity retailers, must buy and surrender LGCs each year in proportion to their electricity purchases. The obligation is the demand. The power stations, selling certificates in addition to electricity, are the supply. See liable entity and LGC.

In practice

For a rooftop installer, the LRET matters for two reasons. First, it is the other scheme people confuse with STCs. Second, it sets the boundary: solar above the small-scale limit has historically created LGCs rather than STCs. From 1 October 2026, systems above 100 kW and up to 1 MW create STCs, with a fixed five-year deeming period, as covered in mid-scale solar STCs. Above 1 MW stays in the LRET.

LGC prices behave differently from STCs. The verified LGC spot has been oversupplied and cheap in 2026, roughly $6 to $9 in September 2026 after a low near $4 in February. STCs, by contrast, trade near their $40 clearing house ceiling.

Worked example

A solar farm generates 50,000 MWh in a year and creates 50,000 LGCs. An STC creator never counts MWh. A rooftop STC is deemed up front, covering the system’s expected output over its deeming period.

Common confusion

LGCs are generated annually from metered output. STCs are deemed in one lot at installation. The LRET is also not the whole RET. See RET and SRES.

See also STC trading, the certificate trading glossary and the glossary.