Creating LGCs is a regulatory exercise. Selling them is a commercial one, and it is where the revenue is decided. A project with 150 LGCs a year can sell at a fair price or a poor one, to a buyer who pays on time or a buyer who does not, on terms that suit its cash flow or terms that do not. This guide is about that second half: who buys, how prices are quoted, what contracts look like and how a sale settles.
It assumes you already have, or are about to have, an accredited power station creating LGCs. If not, start with how to create LGCs, then come back. For the difference between LGCs and the STCs that smaller systems use, see LGC vs STC.
What you are selling
An LGC represents one megawatt hour of eligible renewable electricity generated by an accredited power station. It is created in the REC Registry after generation is reported, and it can then be transferred or surrendered. Because the Renewable Energy Target requires liable entities, mainly electricity retailers, to surrender LGCs each year, there is a steady source of demand. The large-scale target is set to 2030, and the market’s view of what happens beyond that shapes forward pricing. See what LGCs are.
Spot, forward and fixed-price contracts
| Contract | What it is | Who it suits |
|---|---|---|
| Spot | Sell certificates you already hold, at today’s price, for prompt delivery | A project with a backlog of LGCs, wanting cash now |
| Forward | Agree a price today for LGCs to be created and delivered later | A project that wants price certainty |
| Fixed price over several years | A long-term agreement at one price | A project that wants predictable revenue for finance |
| Index-linked or floor and share | Price tied to the market, with a floor or a share of upside | A project willing to take some market risk |
LGC spot has been roughly $6 to $9 in September 2026. Forward prices for later years can be above or below spot, and any figure is a snapshot. Never quote a price in a contract without the delivery date and volume beside it.
A worked example
A 250 kW commercial system installed before 1 October 2026 and generating about 350 MWh a year earns about 350 LGCs. (Solar above 100 kW installed from 1 October 2026, up to 1 MW, can create STCs instead, so LGC projects are now mostly older systems and those above 1 MW. See mid-scale solar STCs.)
| Sale approach | Price per LGC | Revenue a year |
|---|---|---|
| Spot at $6 | $6 | $2,100 |
| Spot at $7.50 | $7.50 | $2,625 |
| Spot at $9 | $9 | $3,150 |
| Fixed forward at $7 for the year | $7 | $2,450 |
The swing between $6 and $9 is $1,050 a year on that project, which will be larger than the fee savings from choosing a cheaper agent. It also shows why small projects need to count the cost of accreditation, metering and agent fees against the revenue. See how much an LGC is worth.
Selling directly or through an agent
Direct to a buyer
Large generators with volume sell straight to a retailer or corporate buyer under a purchase agreement. You get the full price but take on the work of finding buyers, managing credit risk and administering transfers.
Through an agent or trader
An agent markets your LGCs to buyers, handles contracts and settlement and takes a fee or a spread. This suits smaller and mid-sized projects. Compare more than one quote, and compare them on the same basis: price, volume, delivery schedule, settlement days and fees. The LGC trader answer lists what to ask.
Through a retailer’s power purchase agreement
Some PPAs bundle the electricity and the LGCs. If your customer, the host, buys your power, check whether the LGCs go with it, and if so, whether the price reflects them.
The points a contract should settle
- Volume and delivery. How many LGCs and when.
- Price and basis. Fixed, floating or floor and share.
- Settlement. How many days after transfer you are paid.
- Credit risk. Who the counterparty is and what happens if they fail to pay.
- Fees. Agent fees and any registry costs.
- Failed or rejected certificates. What happens if certificates are queried.
- Term and exit. How long you are tied in, and the notice to leave.
From the desk: the most common mistake is signing a multi-year fixed-price agreement because the price looks fair today, without asking what happens to the LGCs after 2030. The target is legislated to 2030, so contract terms that run past it need careful wording. Ask the buyer in writing what they assume about post-2030 delivery, and leave room to renegotiate.
How a sale settles
- Generation is metered and reported, and the LGCs are created in the REC Registry.
- You and the buyer agree price and volume.
- You transfer the certificates in the registry to the buyer’s account.
- The buyer confirms receipt.
- Payment is made on the agreed settlement terms.
- You keep the contract, the registry record and the invoice for your records and your GST treatment.
GST applies to LGC sales for registered entities, and a tax invoice is part of the process, as with other certificates. Confirm with your accountant.
Common problems
- Selling certificates you do not have yet with no clear delivery plan.
- Mismatch between metering and claim, which delays creation.
- Unclear fees, discovered after the first settlement.
- Concentration risk, selling everything to one buyer on long terms.
- Late creation, missing the regulator’s timing, which loses value.
Is it worth it for smaller projects?
On the lower end of the large-scale range, such as an older system of 100 to 250 kW, it can be marginal at current prices. Compare the cost of accreditation, metering and ongoing agent fees with the expected revenue. For solar up to 1 MW installed from 1 October 2026, STCs are paid upfront with a fixed five-year deeming period and are usually the better route; below 100 kW the existing small-scale rules apply. See commercial solar and STCs and the commercial solar over 100 kW answer.
Where we fit
Energy Merchants focuses on STCs, battery STCs, VEECs and hot water certificates, and has the relationships of REC Traders behind it, trading since 2004. If you have large-scale volume to sell, talk to the desk about what we can do and what we would refer on. The resources hub has the background guides, and pricing shows where the small-scale market sits.
What to do next
- Confirm accreditation, metering and registry setup are in place.
- Estimate annual LGCs from your metered generation.
- Ask two or three agents or buyers for written quotes on spot and forward.
- Compare them on price, delivery, settlement, fees and credit risk.
- Check contract terms against the 2030 end of the target before you sign.