Solar and battery installations for systems over 100 kilowatts
How does it work?
In 2001 the federal government instigated the Renewable Energy Target (RET) for customers to receive solar subsidies. As of 2011, this was implemented through the Small-scale Renewable Energy Scheme and the Large-scale Renewable Energy Target. Small Technology Certificates (STCs) and Large Generation Certificates (LGCs) became the commodities within each scheme respectively.
Eligible activities create the Certificates and liable entities (such as energy retailers) are required to surrender a set number of certificates to the Clean Energy Regulator each year.
The certificates are traded on energy markets and therefore have a price which fluctuates with the amount of activity.
Solar PV systems over 100 kilowatts are deemed to be power stations and are entitled to LGCs.
Similar to STCs, each certificate is equivalent to 1 megawatt hour, but rather than being created upfront for the deeming period LGCs are calculated and issued on an annual basis.
In Victoria, you can claim VEECs rather than LGCs on systems over 99 kilowatts, which will usually give a greater subsidy and return on investment. As discussed in this blog.