Australia does not have one renewable energy certificate. It has several, run by different governments, created by different activities and bought by different parties. The names are close enough to confuse: STC, LGC, VEEC, ESC, PRC. If you have ever been told “your solar rebate is paid as STCs” and wondered what that meant, the answer is that a certificate was created in your name and sold to someone who needed it.
This article is a map. It explains what a certificate is, why the system exists, and how to tell the five main types apart, so that when a quote, an invoice or a trader mentions one you know what you are looking at.
The idea behind every certificate
The logic is the same across all schemes. A government wants more of something: renewable generation, energy savings, lower peak demand. It does not pay for it directly. Instead it sets a target and obliges certain businesses, mainly electricity retailers, to prove they have met their share by handing certificates to a regulator.
Those certificates have to come from somewhere. They are created when someone does the thing the government wants: installs rooftop solar, replaces an inefficient hot water system, builds a wind farm. The creator can sell them. Retailers buy them. The price is set by supply and demand, capped in practice by the penalty for not complying.
The result is a payment that flows from electricity buyers, through retailers, to the households and businesses that do the work. It is why a solar discount can appear on a quote without anyone writing a government cheque.
The five certificates
| Certificate | Scheme | Unit | Created by |
|---|---|---|---|
| STC | Small-scale Renewable Energy Scheme (federal) | 1 MWh of deemed generation or equivalent | Solar, batteries, solar and heat pump hot water |
| LGC | Large-scale Renewable Energy Target (federal) | 1 MWh generated | Accredited power stations, including solar above 1 MW and older solar above 100 kW |
| VEEC | Victorian Energy Upgrades | 1 tonne of CO2-e abated | Accredited persons doing prescribed activities |
| ESC | NSW Energy Savings Scheme | 1 MWh saved | Accredited Certificate Providers |
| PRC | NSW Peak Demand Reduction Scheme | Peak demand reduction | Accredited Certificate Providers |
The federal schemes are run by the Clean Energy Regulator (CER). Victoria’s is run by the Essential Services Commission. NSW’s are administered by IPART with the NSW Government.
STCs: the one most installers handle
Small-scale Technology Certificates are the ones your customers see. Install an eligible solar system and you create STCs, up front, for the electricity it is expected to generate over the deeming period. For 2026 installs that period is five years, shrinking by a year each January until the scheme ends on 31 December 2030.
The count depends on system size, postcode zone and the deeming period. Zone ratings run from 1.622 to 1.185. A 6.6 kW system in a 1.382 zone gets 6.6 x 1.382 x 5, about 45 STCs. At a market price in the high $30s that is in the range of $1,700 to $1,800. Our deeming period guide has the full table, and what an STC is worth explains why the price sits just under the $40 clearing house ceiling.
Batteries under the Cheaper Home Batteries Program also create STCs, at a rate per kWh of usable capacity. See the battery STC pages for the current factor, which falls on 1 January 2027.
LGCs: certificates for power stations
Large-scale Generation Certificates are created as an accredited power station actually generates, one per MWh. A commercial solar system above 1 MW, or above 100 kW installed before 1 October 2026, takes this path; mid-scale solar from 1 October 2026 creates STCs instead (see mid-scale solar STCs). LGCs arrive slowly and sell on a negotiated basis, and spot prices have been roughly $6 to $9 in September 2026, far below the STC. We cover the mechanics in LGC trading.
VEECs, ESCs and PRCs: the state schemes
These reward efficiency rather than generation.
VEECs (Victorian Energy Efficiency Certificates) are created through Victorian Energy Upgrades for activities such as efficient heating and cooling, hot water and lighting. Spot prices have been roughly $85 to $95 in 2026, with a record near $110. See VEEC trading.
ESCs are created under the NSW Energy Savings Scheme, per MWh saved. PRCs reward cutting demand at peak times. For the NSW picture, read what the Energy Savings Scheme is.
Why the prices are so different
A VEEC at about $90 and an LGC at about $7 can look inconsistent, but they measure different things (a tonne of carbon abated versus a megawatt-hour generated) against different targets and penalties. Do not convert between them. Compare each to its own scheme’s history and ceiling.
From the desk: When a customer asks whether “the rebate” is the same everywhere, the honest answer is that the federal part is, and the state part is not. A solar job in Melbourne, Sydney and Perth shares the STC. A heat pump or an air conditioner may also carry a state certificate, and the rules for stacking them differ by state. Check the scheme page before you quote both.
Who actually buys them
The legal buyers are the liable entities: electricity retailers and some large users. In practice, most small creators do not sell to retailers directly. They sell to a trader, which aggregates certificates, validates them, and on-sells. That is why you can create an STC on Monday and be paid on Tuesday: someone else takes the registry wait and the price risk. If you are comparing traders, our checklist is the place to start, and the how it works page shows the settlement path step by step.
What happens when a scheme ends
The Renewable Energy Target ends in 2030. STCs can only be created for installs up to 31 December 2030, and LGC creation likewise runs to the end of the scheme. State schemes run on their own legislation and timelines. Our piece on the wind-down to 2030 deals with what installers should plan for.
Reading a quote or invoice
You will meet certificates in three places. On a solar quote, an “STC discount” is the expected value of the certificates, passed to you by the installer who assigned them to a trader. On a hot water or air conditioning job in Victoria, a “VEU discount” is the VEEC value taken off the price. On a commercial invoice in NSW, an “ESS incentive” is the ESC value.
The test for any of these is the same. Ask what the certificate is, who is creating it, and what happens to the discount if the claim fails. A reputable installer can answer in two sentences. A vague answer is a reason to ask for the paperwork before you sign, because the discount is only real if the certificates are valid.
Common mistakes people make
- Treating certificates as a government payment. They are market instruments. Prices move, and the sale is a commercial deal.
- Assuming one rebate covers everything. Federal and state certificates are separate, with separate rules on stacking.
- Confusing the deeming period with the scheme end. The deeming period shortens each year, while the scheme ends on 31 December 2030.
- Forgetting the paper trail. Every certificate depends on evidence, and evidence is the part that gets audited.
What to do next
- Learn which certificate each of your product lines creates, and write it on the quote template
- Check today’s STC rate on the pricing page before quoting
- If you are new to selling certificates, read the STC trading overview and our certificate glossary
- Bookmark the official scheme pages: Clean Energy Regulator, Essential Services Commission (Victoria) and IPART (NSW)