Incentives
STC's Explained
An STC is a small-scale technology certificate. Each STC represents 1 megawatt-hour of renewable electricity either generated or displaced by small-scale renewable energy systems, this includes solar systems. STCs create a financial incentive to install small-scale renewable energy systems by reducing upfront installation costs. Once created and validated the STCs can be "sold" to recoup some of the cost of purchasing and installing solar systems.
To be eligible for small-scale technology certificates, solar units must meet certain criteria. To start with the certificates must be created within 12 months of the installation, and have its components listed on the Clean Energy Council list of approved components. Highline will work with you to ensure your system meets this requirement if relevant. The system will also need to meet Australian and New Zealand standards as well as be classified as "small scale". For solar panel system's they must have a capacity of no more than 100 kW, and a total annual electricity output less than 250 MWh.
LGC's Explained
Large-Scale Generation Certificates or LGCs are created by a nominated person working on behalf of/within accredited power stations. One LGC can be created per 1 MWh (megawatt hour) of eligible renewable electricity generated above the power station's baseline. LGCs apply to power stations that have a capacity of more then 100kW.
A nominated person can create LGCs by submitting a claim for LGCs via the REC Registry. Once a commercial solar claim for LGCs has been received, the Clean Energy Regulator (CER) determines the eligibility of LGCs created. Once created, submitted and deemed eligible LCGs can be used an electronic form of currancy to offset the cost of installing and designing large scale industrial solar solutions.
Difference between LGC's and STC's
LGC's
- Larger scale (Power stations with systems exceeding 100kW capacity).
- Ongoing, LGCs are generated on an ongoing basis through operation of the system.
- LGCs are an ongoing option that represent a long term investment.
STC's
- Smaller scale (systems with less then 100kW capacity).
- Upfront, STCs are generated before installation based on how much electricity the system will generate until 2031.
- STCs are being phased out so this is a temporary opportunity.
VEEC's Explained
Victorian energy efficiency certificates (VEECs) are electronic certificates created as excess energy, allowing for a reduction of carbon emissions, that is “self-consumed”. Similar to having solar feed back into the grid to offset your carbon footprint, except instead of feeding back into the grid your system is using the energy created to offset its individual footprint directly. Once created, certificates can be sold to energy retailers who have a liability to accept a certain number of certificates each year.