Reasons To Use Large-Scale Generation Certificates (LGCs)?

by Steve Smith Latest News and Blog

If you’re planning a large-scale solar installation, you may want to consider using large-scale generation certificates (LGCs) to complement your system. LGCs are created by accredited power stations that generate electricity via renewable energy sources and are verified by an independent third party. Both commercial and residential customers can use them as part of their Renewable Energy Target obligations.

You May Not Be Eligible To Create STCs

If you are a small business or if you are a householder, you may not be eligible to create STCs. It is also possible that you might not be able to create STCs if your business is large enough. If this is the case, then it would not make sense for your company to invest in renewable energy sources because it is unlikely that the investment would pay off.

The same goes for non-profit organizations which cannot earn profits from their operations and therefore cannot sell LGCs on the market once these organizations have created them.

LGCs

LGCs Have A Longer Life Than STCs At 15 Years

At the time of writing, Large-scale generation certificates (LGCs) have a longer life than Small-scale technology certificates (STCs).

STCs are created for the production of electricity from renewable energy sources, for example, solar or wind. LGCs can be used to offset carbon emissions from any source. In addition to this, STCs are only valid for 10 years, whereas LGCs last 15 years and therefore offer you more flexibility when using them in your business.

Using LGCs Allows Investors To Fund More Installations

Not only does using LGCs help to fund more solar projects, but it also allows investors to expand the support for more solar projects. Using LGCs means that an investor can purchase certificates in a state where they have no business operations and then sell them to another party in another state. This makes it possible for investors who are based outside of Australia, with limited knowledge of local markets, to still participate in financing renewable energy projects.

LGCs Are A Great Way To Compliment Your Small-Scale Solar Installation

If you’re already running a solar power system at home, it can be tricky to decide how many LGCs to purchase. The amount of electricity your system generates will vary from month to month depending on the weather, which means that the amount of credit you receive may also fluctuate monthly. By purchasing enough LGCs from your retailer each year, you’re guaranteed an annual income based on the value of 1MWh for 15 years (or until their contract ends). This means that if you’ve installed a 5kW system and purchased all available STCs, but only generated 4kW in some months without any LGCs in place, you would be unable to receive any income this way season.

Conclusion

LGCs are a great option for anyone looking to invest in solar projects. They allow you to support more installations and expand the benefits of renewable energy while still supporting your own small-scale system at home.