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Commercial Solar Rebates
& Renewable Energy Incentives
Explore the Range of Government Support Available for Your Project
Commercial Solar Rebates: Federal STCs & LGCs
The Australian Government’s Renewable Energy Target (RET) was introduced to encourage additional generation of electricity from Commercial Solar Power Systems to meet the Government’s commitment to achieving a 20 per cent share of renewables in Australia’s electricity supply by 2020.
The RET creates a financial incentive, often referred to as a Commercial Solar Rebate, for investment in renewable sources through the creation and sale of certificates. The RET is split into two parts: the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES).
Under the LRET large-scale generation certificates (LGCs), also known as Commercial Solar Rebates, are created in the online Renewable Energy Certificate (REC) Registry by renewable energy power stations. One LGC is equivalent to one megawatt hour of eligible renewable electricity generated above the power station’s baseline.
Under the SRES small-scale technology certificates (STCs), also known as Commercial Solar Rebates, are created in the online REC Registry for correctly installed small-scale solar panel, wind and hydro systems.
Renewable energy certificates
Renewable energy certificates (RECs), also known as Commercial Solar Rebates, were the primary commodity in the Renewable Energy Target (RET) prior to 1 January 2011. From 1 January 2011 RECs were split into types: small-scale technology certificates (STCs) and large-scale generation certificates (LGCs).
RECs is still used as a general term covering both STCs and LGCs, also known as Commercial Solar Rebates.
Small-scale technology certificates
Small-scale technology certificates (STCs), also known as Commercial Solar Rebates, are created for eligible installations of small generation units (small-scale solar panel systems). One STC is generally equivalent to:
1 MWh of renewable electricity generated by a small generation Solar Panel System (up to 100kW in Capacity)
A small-scale technology certificate (STC), also known as Commercial Solar Rebates, is equal to 1 megawatt hour of renewable electricity either generated or displaced by eligible small-scale renewable energy systems. STCs create a financial incentive, also known as Commercial Solar Rebates, to install small-scale renewable energy systems by reducing upfront installation costs.
Under the Small-scale Renewable Energy Scheme (SRES), eligible small-scale renewable energy systems are entitled to a number of STCs.
The number of certificates that can be created per system is based on its geographical location, installation date, and the amount of electricity in megawatt hours (MWh) that is:
generated by the small-scale solar panel system over one or 5 years, or a single maximum deeming period, or
The Renewable Energy Target (RET) is supported by an online registry system, called the REC Registry, which facilitates the creation, validation, auditing and transfer of certificates. Lumenaus Solar is accredited to create STCs in the REC Registry.
Once created and validated, these certificates act as a form of currency, also known as Commercial Solar Rebates, and can be sold to recoup a portion of the cost of purchasing and installing the system, or transferred to other individuals and businesses at a negotiated price.
Large-scale generation certificates
Large-scale renewable energy projects, such as Solar PV, are entitled to create large-scale generation certificates (LGCs), also known as Commercial Solar Rebates. One LGC is equivalent to:
1 MWh of renewable electricity generated above the power station baseline.
The nominated person for an accredited power station may create large-scale generation certificates (LGCs) for eligible electricity generated by the power station. Eligible electricity is electricity generated from the power station’s renewable energy sources.
One LGC can be created per megawatt hour (MWh) of eligible electricity generated by a power station. The amount of electricity generated by a power station is to be worked in accordance with the large-scale generation certificate general formula.
A nominated person can create LGCs by submitting a ‘claim’ for LGCs in the REC Registry. Once a claim for LGCs has been received, the Clean Energy Regulator determines the eligibility of LGCs created (this process is called the ‘validation’ process), and will register eligible LGCs in the REC Registry.
Registered LGCs can be sold or transferred, also known as Commercial Solar Rebates, to entities with liabilities under the Renewable Energy Target or other companies looking to voluntarily surrender LGCs.
Liable entities are companies (mainly electricity retailers) that are required to purchase and surrender LGCs to the Clean Energy Regulator each year in fulfilment of their obligations under the Renewable Energy (Electricity) Act 2000.
LGCs, also known as Commercial Solar Rebates, are sold to liable entities (and other companies or individuals) in the market at a price determined by agreement between those parties.
VEECs for Commercial Solar PV
Victorian energy efficiency certificates (VEECs), also known as Commercial Solar Rebates, are electronic certificates created under the program when certain energy efficiency activities are undertaken in non-residential premises. Each certificate represents one tonne of greenhouse gas emissions reduction (CO2-e).
Once created certificates can be sold to energy retailers who have a liability under the program to surrender a certain number of certificates each year.
Victorian energy efficiency certificates (VEECs), also known as Commercial Solar Rebates, can be created through new installations or projects that deliver energy savings, when carried out by an accredited person. Each certificate represents one tonne of greenhouse gas emissions reduction (CO2-e).
The project-based activities, measurement and verification method is used for energy-saving projects at business and non-residential sites, typically with large energy use. Savings are determined by comparing energy use before and after the project implementation, using industry-standard measurement and verification techniques.
How much are Solar VEEC worth to your Business?
Here are a couple of examples for Lumenaus clients;
A 300 kW Solar PV system for a Food Manufacturer running 7 days per week with 90% self-consumption
2,822 VEECs at a Forward Contract Price of $69.60exGST per VEEC is $196,411.20exGST
A 200 kW Solar PV system for a Manufacturer with 5.5 days per week self-consumption with 20% exported to the grid, the remaining 1.5 days is fully exported to the system.
1,593 VEECs at a Forward Contract Price of $69.60exGST per VEEC is $110,872.80exGST
System Eligibility for Solar VEECs
To claim Victorian Energy Efficiency Certificates (VEECs) for a large-scale solar installation, you must:
Be an existing facility based in Victoria that has been in operation for over twelve months.
Will not claim LGCs or STCs under the Australian Renewable Energy Target.
Plan to install a Solar PV system of 200kW or greater in capacity.
Consume the bulk of the solar energy onsite as VEECs are based on Energy Savings derived from the activity.
Not be excluded by the SAP / EREP register (some large energy-users are excluded)
The project must be registered with the regulator BEFORE construction commences.
Provide details of how energy is consumed onsite in order for us to model the grid energy savings.
Process and Timelines for Solar VEECs
Approval of the project to the program regulator BEFORE construction commences.
Modelling of the baseline energy usage is performed (using 12 – 24 months of pre-upgrade data).
Lumenaus Solar performs construction and grid connection of the PV system.
Twelve months of operating data is collected (along with production outputs).
Modelling of the upgraded energy usage is compared to baseline to calculate the grid energy savings.
The quantity of VEECs registered is based on the MWhs of energy saved for the next 10 years converted into tonnes of CO2. 1 VEEC = 1 Tonne of CO2 abated.
VEECs are sold to Energy Retailers to meet their obligations under the Victorian Energy Upgrades (VEU) Program.
Payments are made to the end-customer.