A renewable energy certificate is a powerful tool in the clean energy market. If you’ve installed solar or are considering it, understanding a renewable energy certificate can directly impact your savings and energy choices. In Australia, the renewable energy certificate system plays a key role in reducing electricity costs and encouraging clean energy adoption.
What is a Renewable Energy Certificate (REC)?
A renewable energy certificate (REC) is proof that 1 megawatt-hour (MWh) of electricity has been generated from renewable sources, such as hydro, wind, or solar power.
In simple terms, a renewable energy certificate shows that clean energy has been added to the grid. These certificates can be sold, traded, or used to meet renewable energy targets.
Key points about a renewable energy certificate:
- 1 REC = 1 MWh of renewable electricity
- It confirms clean energy generation
- It has financial value in energy markets
- It supports the government’s renewable targets
The two types of Renewable Energy Certificates in Australia
The renewable energy certificate system in Australia is designed to reward households and businesses that invest in renewable energy.
The national framework in Australia divides renewable energy certificates into two main types based on system size. Understanding the specific type allows you to capture the right financial benefits for your property.
Large-scale Generation Certificates (LGCs)
Large-scale Generation Certificates (LGCs) apply to large-scale renewable energy projects such as solar and wind farms.
- Target systems: Commercial solar farms, large hydro plants, and wind farms.
- How they work: Generated continuously based on actual electricity fed into the grid.
- Who buys them: Massive industries and electricity retailers to meet legal obligations.
Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STCs) are the most common type of renewable energy certificate for households.
- Target systems: Residential rooftop solar, air-source heat pumps, and solar hot water systems.
- How they work: Deemed upfront based on how much electricity the system will likely save or create.
- Who buys them: Solar installers who buy them from you to offer an immediate point-of-sale discount.
Renewable Energy Certificate at a glance
| Large-scale Generation Certificate (LGC) | Large wind/solar farms (>100 kW) | MWh of renewable electricity generated | Power retailers & businesses meet LRET targets |
| Small-scale Technology Certificate (STC) | Rooftop solar & solar hot water (<100 kW) | Based on the expected output over the deeming period | Upfront discount on your solar installation cost |
| GreenPower | Households & businesses buying certified green power | N/A – purchased through retailers | 100% renewable electricity on your bill |
| Voluntary RECs | Businesses with carbon-neutral goals | Varies by project | Offset emissions; support renewable projects |
How does a Renewable Energy Certificate in Australia affect you?
A renewable energy certificate in Australia directly lowers the upfront price of installing a new solar power setup. When you buy solar, you are entitled to create a set number of STCs. Most homeowners choose to assign these certificates directly to their solar installer.
The installer then applies the value as a substantial discount on your final quote. This mechanism saves you thousands of dollars before the installation even begins. It makes transitioning to solar power accessible for everyday household budgets.
If you own solar panels:
- You receive STCs as a financial benefit
- Your system becomes more affordable
- Your return on investment improves
If you don’t have solar:
- Energy retailers pass REC costs into electricity prices
- You indirectly pay for renewable energy support
If you’re a business:
- You can purchase RECs to offset emissions
- You improve sustainability credentials
- You meet corporate ESG goals
Contact us today for up to 3 FREE quotations from residential or commercial solar firms we’ve pre-qualified and vetted for their track record of delivering Australia’s best home or business solar systems.
Important subsidy note: The financial value of STCs varies with market supply and demand. Acting quickly ensures you secure higher subsidy rates before scheduled national phase-outs reduce certificate values.
GreenPower: Buying RECs through your electricity retailer
If you rent or cannot install solar, you can still support renewable energy through GreenPower. This is a government-accredited program that lets you pay a premium on your electricity bill, with that money going towards buying RECs on your behalf.
Retailers purchase accredited renewable energy equal to your usage and retire the certificates so they cannot be counted twice. GreenPower is verified and audited — you can trust that your money is genuinely supporting clean energy.
Battery storage and RECs
Batteries that store solar energy do not earn RECs directly, but they work alongside your solar system to maximise how much renewable energy you use — and they complement the STC scheme by making your overall solar investment more efficient.
Use Energy Matters’ easy-to-use solar power and battery storage calculator to determine the size of your solar system with storage! Our solar calculator will generate performance information and potential savings.
We can send this information to 3 of our pre-vetted, trusted local installers in your area so they can provide obligation-free solar quotes and take the first step toward true energy independence!
Why Renewable Energy Certificates matter
A renewable energy certificate is more than just a piece of paper. It directly influences energy costs, sustainability, and investment in clean energy.
Benefits of renewable energy certificates:
- Lower energy costs: Certificates reduce upfront solar costs
- Environmental impact: Encourages clean energy production
- Market growth: Drives investment in renewable projects
- Energy transition: Supports shift away from fossil fuels
How to make sure your RECs are legitimate
Not all “green” energy claims are backed by genuine certificates. Here are the steps to protect yourself:
- Choose a Clean Energy Council (CEC) accredited solar installer — they are authorised to create and assign STCs
- Ask for your installation certificate and STC documentation after your system is installed
- Use the Clean Energy Regulator’s public registry to check that your system has been registered
- If buying GreenPower, look for the government-accredited GreenPower logo on your energy plan
Energy Matters partners only with CEC-accredited installers across Australia to ensure your solar investment is fully compliant and your certificates are legitimate.
How to claim Renewable Energy Certificates
Most homeowners never directly handle their renewable energy certificate paperwork in Australia. Installers manage the process.
If you install solar, claiming your renewable energy certificate is usually simple.
Steps:
- Install a compliant solar system
- Work with an accredited installer
- Assign your certificates to the installer
- Receive an upfront discount
Common misconceptions about Renewable Energy Certificates
Understanding the renewable energy certificate system in Australia helps you make smarter energy decisions. There are several myths about renewable energy certificates.
Myth 1: RECs are a government handout
They are actually part of a regulated market system.
Myth 2: RECs only benefit solar owners
Everyone benefits from cleaner energy and grid improvements.
Myth 3: RECs last forever
Certificates are created and used within specific timeframes.
Start saving on your electricity bills today!
Ready to slash your power bills and take advantage of lucrative renewable energy certificates? Energy Matters connects you with a trusted nationwide network of local, certified solar installers.
Receive up to three free, no-obligation solar quotes tailored to your home or business needs. Let the experts handle your certificate application so you can enjoy instant point-of-sale savings. Complete our quick online form now to claim your energy independence!
