Selling LGCs is a smaller business than it was a few years ago. With spot prices around $8, a commercial solar owner can expect low five figures a year for a megawatt-scale system, and the work is mostly administration. It is still worth doing properly, because the owner gives up value by letting certificates sit unregistered, or by selling to the first buyer who calls without checking terms.
This article walks through what happens after accreditation: creating the certificates, finding a buyer and choosing a pricing structure. For accreditation itself, see how to accredit a solar power station.
First, check you are on the right path. From 1 October 2026, solar PV above 100 kW and up to 1 MW can create STCs under the Small-scale Renewable Energy Scheme, with a fixed five-year deeming period. That is paid upfront and worth far more. A 250 kW system in zone 3 creates about 1,727 STCs, roughly $65,600 at $38, against about $3,000 a year in LGCs at $8. The route in this article applies to power stations above 1 MW and to accredited stations that already exist. See mid-scale solar STCs.
What an LGC is
One LGC represents one megawatt-hour of eligible renewable electricity generated by an accredited power station. Retailers and other liable entities surrender LGCs to the Clean Energy Regulator (CER) to meet their Renewable Energy Target obligation, which is why the market exists. See what an LGC is and LGC vs STC.
Step 1: create the certificates
After the electricity has been generated, you lodge generation data in the REC Registry, supported by meter readings, and the CER issues the certificates once validated. Do this on a regular schedule, such as monthly or quarterly. Certificates created late are still valid, but money is delayed, and errors accumulate. See how to create LGCs.
Step 2: understand what you can earn
| System | Annual generation | LGCs a year | At $6 | At $8 | At $9 |
|---|---|---|---|---|---|
| 1.2 MW | 1,800 MWh | 1,800 | $10,800 | $14,400 | $16,200 |
| 1.5 MW | 2,250 MWh | 2,250 | $13,500 | $18,000 | $20,250 |
| 3 MW | 4,500 MWh | 4,500 | $27,000 | $36,000 | $40,500 |
The generation figures assume about 1,500 kWh per kW per year, which suits a sunny zone 3 site. Actual yield depends on location, orientation, shading and degradation. See how much an LGC is worth and LGC price.
The market has been oversupplied, with commentators and the regulator expecting that to continue to the end of the RET in 2030. The 2026 range is a low near $4 in February and roughly $6 to $9 in September. There is no sign of a quick recovery, so plan on low prices.
Step 3: choose a buyer
| Buyer | How it works | Good for |
|---|---|---|
| Registered agent or trader | Buys at an agreed price, handles registry transfer | Owners who want simplicity |
| Retailer or liable entity | Buys directly, often under a long-term contract | Large systems, bundled deals |
| Corporate buyer | Buys and surrenders voluntarily for reporting | Sites with a customer who wants the green claim |
| Broker | Matches you with buyers for a fee | Larger or unusual volumes |
Step 4: choose a pricing structure
Spot. You sell at the price on the day. It is simple and exposed to the market. At $8 one year of 2,250 LGCs is about $18,000. If spot falls to $5, it is $11,250.
Fixed forward. You agree a price for a volume and a period, for instance 2,000 LGCs a year at a set price. This protects you if the market drops, but you lose if it rises. When the market is oversupplied, buyers rarely pay up for forward certainty.
Bundled with electricity. Under a power purchase agreement (PPA), the LGCs may be part of the deal. See commercial solar PPAs explained. Check who owns the certificates under any PPA, because a customer paying a low PPA price may have assigned them to the provider.
Staged. Sell part at spot and part forward, a simple hedge.
Step 5: transfer and get paid
The buyer and seller agree the price. The seller transfers the certificates in the REC Registry, and the buyer pays on the agreed term. Check the payment term before transferring. Common practice is to pay on or shortly after transfer, but there is no standard, and some forward contracts pay monthly in arrears.
Fees and costs
- Agent or broker fees, usually per certificate or a percentage.
- Registry costs. Small account and transaction charges, which the CER sets.
- Metering and data. Meter reading and data collection costs.
- Accounting and tax. LGC income is generally business income, and GST may apply. Ask your accountant.
What happens after 2030
The Renewable Energy Target runs to 2030, and the long-run value of LGCs after that depends on voluntary demand and any successor policy. We would not put a number on it. For the market view, see LGC trading and the LGC pillar.
Is it worth it?
For a 1.5 MW system earning about $18,000 a year, an agent fee of 2% is $360. A year’s work for the owner is a monthly data upload and a check of the statement. That is a good return on time. For a small power station earning $3,000 a year, fixed costs can take much of the income. Run the numbers on net income, not gross.
A contract checklist for an LGC sale
Whether you sell to an agent, a retailer or a corporate, read these points before you sign.
- Volume. Does the contract cover all your certificates or a fixed number? What happens if generation is above or below?
- Price. Fixed, or tied to a reference price? Is there a floor or cap?
- Deductions. Admin fees, registry fees, brokerage. Net cents per certificate.
- Payment. On transfer, monthly in arrears or on a date. Any set-off rights.
- Vintage. Which years’ certificates are covered? Are there any restrictions?
- Term and exit. How long, and how do you leave? Is there a penalty?
- Assignment. Can the buyer pass your contract to someone else?
- Compliance. Who is responsible if a certificate is later found invalid?
The same questions apply in the STC market, which is why the certificate trader checklist is a useful companion. Fixed-price contracts in an oversupplied market tend to be priced below spot or short in term, so read the numbers, not the headline. For the price context, see the LGC spot price answer.
What to do next
- Confirm your path: STCs for 100 kW to 1 MW installed from 1 October 2026, LGCs for stations above 1 MW and existing accredited stations.
- Set a monthly or quarterly calendar for creating certificates.
- Ask two buyers for net per-certificate terms, then compare payment timing.
- See the glossary for terms, and how it works to see how certificate settlement works for STCs.
- For commercial installers, start trading for STC claims on 100 kW to 1 MW systems from November.