LRET (Large-scale Renewable Energy Target)

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

LRET stands for Large-scale Renewable Energy Target. It is the part of the Renewable Energy Target aimed at power stations: solar farms, wind farms, hydro and bioenergy. It is paired with the small-scale scheme that creates STCs. For the whole scheme, see RET definition.

The target is expressed in annual gigawatt-hours (GWh). After a 2015 revision it was set at 33,000 GWh a year of additional renewable generation by 2020, and that level is maintained to 2030. Scheme certainty ends in 2030, which is why the market is watching what replaces it.

How it works

1. Accredited power stations create LGCs, one per MWh of eligible output. See LGC creation.
2. Liable entities, mostly retailers, must acquire and surrender enough LGCs each year to cover a percentage of their electricity purchases, known as the renewable power percentage.
3. The demand from that obligation gives LGCs a price, and the price helps finance new projects.

In practice

Small installers do not trade LGCs, but the LRET shapes the market they work in. In 2026 LGCs have been oversupplied. Prices were roughly $6 to $9 in September 2026, after a low near $4 in February, as a wave of projects came online. A cheap LGC market means retailers have little compliance pressure on the large side.

The small-scale and large-scale halves have different mechanics. STCs are created upfront on deemed output, and their price is supported by a clearing house. LGCs are created after generation, and no such price floor exists. See STC clearing house.

Common confusion

People call the whole scheme “the LRET” or “the RET” interchangeably. Strictly the RET has two parts, and a rooftop installer belongs to the small-scale one, SRES.

The LRET is also not the same as state-based targets. These are separate programs.

See mid-scale solar STCs, STC trading and the glossary.