Live AU Certificate Prices Twitter Linkedin-in Youtube Buy and Sell Global RECs Contact

Capitalising on Large Generation Certificates (LGCs): Amplifying Returns from Solar PV Investments in Australia 

Share this article

As business pivots towards more sustainable operations, and energy prices soar, solar PVSolar Photovoltaic has emerged as one of the best capital investments a business can make. In Australia Solar PV systems larger than 100kW generate not only energy for the business but also Large Generation Certificates (LGCs). These are Renewable Energy Certificates (RECRenewable Energy Certificate) that are verified by the Australian Government Clean Energy RegulatorThe Clean Energy Regulator is the Australia Government body responsible for accelerating carbon abatement for Australia through the administration of the National Greenhouse and Energy Reporting scheme, Renewable Energy Target and the Emissions Reduction Fund. More (CER). Each LGCLarge-scale Generation Certificate under the Australian Renewable Energy Target. More represents one megawatt-hour (MWh) of renewable energy generated by the Solar PV system, typically registered quarterly or annually. 

LGCs are Environmental Attribute Certificates (EACEnergy attribute certificate - generic term for a certificate issued for 1MWh of renewable electricity generated. Used interchangeably with renewable energy certificate (REC).). Here are some of the benefits:  

  1. They are a tradable asset that can be sold as an additional revenue stream for the solar system asset owner. 

    a) LGCs can be bought, sold on the spot, forward and option contracts or warehoused for future use. 
  1. They can be used to boast renewable energy or emission reduction goals. 

    a) Retiring (surrendering) LGCs registered from a behind-the-meter system show how much renewable energy the business used that year; or 

    b) LGCs can also be purchased & retired to increase the amount of renewable energy a business is using without additional physical assets (buy & retire). 
  1. LGCs can be “stapled” with energy by an energy retailer to provide Greenpower. 
  1. The primary demand comes from the 33 million LGCs purchased by Energy Retailers to meet their obligations under the Australian Renewable Energy Target each year through to 2030. 

Northmore Gordon can provide early registration of a solar system with the CER for LGCs; don’t wait till the system is commissioned, by that stage businesses are missing out on LGCs, so you can’t retrospectively register. 

Diversified Revenue: Boosting Cash Flow and Return on Investment 

Most commercial solar farms and early adopters of solar PV exploit the financial potential of LGCs to bolster their income.  The Renewable Energy Target and associated LGCs (and STCsSmall-scale Technology Certificate under the Australian Renewable Energy Target. More) were designed to incentivise and drive investment in renewable energy.   

Commercial Solar farms sell both energy and LGCs to double their income stream and hence achieve a higher return on investment with both depreciating assets and income streams from LGCs and energy.  Many businesses with Behind-The-Meter (BTM) solar systems benefit from lower-cost energy and sell their LGCs to achieve a faster payback on the investment in the solar system. Given the price volatility of LGC investors make use of derivatives (options and forward contracts) to protect their investment. 

It is critical to recognise that the LGC represents the renewable component of the energy generated, and once you sell the LGC you can no longer claim that energy is renewable. This is important for businesses with decarbonisation goals. 

Corporate Sustainability Goals: Strengthening Brand Image and Stakeholder Relations 

Many businesses have signed up to various targets or programs taking action to address climate change.  Such targets include Renewable Energy 100% (RE100RE100 is the global corporate renewable energy initiative bringing together large businesses committed to 100% renewable electricity. The members must be influential based on their either their brand, global presence, significant energy use or other characteristics that bring attention to their commitment. All companies must commit to purchasing 100% of their electricity from renewable sources by 2050 and purchase that power in the same location they are using it. Interim targets are 60% by 2030 and 90% by 2040. The program is led by the Climate Group in partnership with the CDP. More), Science Based Targets Initiative (SBTiScience Based Targets initiative), Climate ActiveClimate Active is an accreditation program for Australian companies to certify their organisations, products, services, events, buildings or precincts as carbon neutral. The program is backed and administered by the Australian government. Companies have to measure their scope 1, 2 and material scope 3 emissions, reduce where possible and offset the remainder by purchasing and retiring offsets. Allowed offsets are LGCs for scope 2 and ACCUs, CERs, RMUs, VCUs or VERs for scope 1 or 3 emissions. Annual reporting is required and published on the Climate Active website. More Carbon NeutralThe act of offsetting all scope 1, 2 and 3 emissions associated with a product or service., CDPCarbon Disclosure Project (CDP) is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. More, Greenpower, or simply voluntary targets for renewable energy or emissions reductions.   

LGCs are an internationally recognised Renewable Energy Certificate (REC) that can be used by all these programs to prove the use of renewable energy.   International businesses are using LGCs in Australia and locally sourced RECsI-RECs, GOs, TIGRs, LGCs, ZNECs, J-Credits in each country they have businesses to effectively buy renewable energy for all their sites. 

Companies with even greater aspirations are buying LGCs and RECs to enable them to state categorically that their products or equipment around the world is being run using only renewable energy. 

The rate of voluntary surrender against the programs is growing rapidly; in 2022 almost 8 million LGCs were voluntarily retired. 

Voluntary LGC surrender (~8M in 2022 vs 33M RETThe Renewable Energy Target is an Australian Government scheme designed to encourage the additional generation of electricity from sustainable and renewable sources. The Renewable Energy Target works by allowing both large-scale power stations and the owners of small-scale systems to create large-scale generation certificates (LGCs) and small-scale technology certificates (STCs) for every megawatt hour of powe​r they generate. Certificates are then purchased by electricity retailers (who supply electricity to householders and businesses) and submitted to the Clean Energy Regulator to meet the retailers' legal obligations under the Renewable Energy Target. More obligation) – Source CER 

Maximising Investment Value: Seizing the LGC Opportunity 

Northmore Gordon is accredited by the Clean Energy Regulator to register Solar PV or Wind and Hydro systems (power stations) allowing us to create LGCs for both behind-the-meter (BTM) systems for business, and grid-connected solar farms for investors.  NG has been trading certificates for more than a decade and can provide contracts to reduce volatility, shore up investment plans, or provide LGCs and other certificates to meet renewable energy targets or emissions reduction goals.  Going a step further NG has the know-how to provide businesses with complete Net Zero Roadmaps, Carbon Neutral accreditations, and carbon reduction pathways.   

Take advantage of the LGC-driven growth potential today and ensure a brighter and more sustainable return on investment. 

You may also like:

Are you overpaying for environmental charges on your energy bill? 
Australian Certificate Markets – March Update.
Australian Certificate Markets – February Update.

Latest Updates

ASRS Group 3: are you in scope and don’t know it?
September 18, 2026

Correct as at 13 September 2026.  If your company is a large proprietary company, you

Read More »
Welcome to our August & September 2026 Compliance Update.
September 1, 2026

This edition confirms Northmore Gordon’s accreditation for three new PDRS battery activities, tracks the VEUVictorian

Read More »
Australian Certificate Markets – August 2026 Update 
September 1, 2026

Price Summary  Certificate  Open  Close  Range  Effective cap  Movement / Reason  PRC  $2.70  $3.35  $2.70

Read More »
Where’s the value in renewable heat?
August 24, 2026

Most renewable heat conversations start with a technology question: heat pump, biomass, biogas, or electrify

Read More »

Get in touch

Australia

1300 854 561 (Advisory)

1300 878 500 (Certificates)

Melbourne

Suite 1, Level 4

607 Bourke Street

Melbourne

VIC 3000

Singapore

+65 6690 2480



Singapore

1 Keong Saik Road,

Singapore 089109

Stay up to date

mailto:%20info@northmoregordon.com https://twitter.com/northmoregordon https://www.linkedin.com/company/northmore-gordon-pty-ltd https://www.youtube.com/channel/UCdGc6mABpL2XxVUCrVjYQ1g

Alternatively, complete the form and we will be in

touch with you.

https://northmoregordon.com
Services
Sectors
Upgrades
Certificates
Government Schemes
Helpful Links

What are Large Generation Certificates (LGCs)?

LGCs are Renewable Energy Certificates (RECs) verified by the Australian Government Clean Energy Regulator (CER). Each LGC represents one megawatt-hour (MWh) of renewable energy generated by a solar PV system, typically registered quarterly or annually. In Australia, solar PV systems larger than 100kW generate not only energy for the business but also these LGCs.

What are the benefits of LGCs according to Northmore Gordon?

LGCs are Environmental Attribute Certificates (EACs) with several benefits: they are a tradable asset that can be sold as an additional revenue stream (bought/sold on spot, forward and option contracts, or warehoused for future use); they can be used to boost renewable energy or emission reduction goals through retiring (surrendering) LGCs to show renewable energy use or via buy & retire without additional physical assets; they can be 'stapled' with energy by an energy retailer to provide Greenpower; and the primary demand comes from the 33 million LGCs purchased annually by Energy Retailers to meet obligations under the Australian Renewable Energy Target through to 2030.

Why should businesses register their solar system with the CER early?

Northmore Gordon can provide early registration of a solar system with the CER for LGCs. Businesses should not wait until the system is commissioned, because by that stage they miss out on LGCs and cannot retrospectively register.

How do LGCs help boost cash flow and return on investment for solar PV owners?

Commercial solar farms sell both energy and LGCs to double their income stream, achieving a higher return on investment through depreciating assets and income streams from both LGCs and energy. Many businesses with Behind-The-Meter (BTM) solar systems benefit from lower-cost energy and sell their LGCs to achieve a faster payback on their solar system investment. Because LGC prices are volatile, investors use derivatives such as options and forward contracts to protect their investment.

What happens to the renewable energy claim once an LGC is sold?

The LGC represents the renewable component of the energy generated, so once the LGC is sold, the business can no longer claim that the underlying energy is renewable. This is important for businesses with decarbonisation goals.

How do LGCs relate to corporate sustainability programs like RE100, SBTi, and Climate Active?

LGCs are an internationally recognised Renewable Energy Certificate (REC) that can be used by programs such as RE100, the Science Based Targets Initiative (SBTi), Climate Active, CDP, Greenpower, or voluntary renewable energy/emissions targets to prove the use of renewable energy. International businesses use LGCs in Australia and locally sourced RECs elsewhere to effectively buy renewable energy across all their sites, and some companies buy LGCs and RECs to state that their products or equipment worldwide run on only renewable energy.

How significant is voluntary LGC surrender compared to the Renewable Energy Target obligation?

Voluntary surrender of LGCs is growing rapidly; in 2022 almost 8 million LGCs were voluntarily retired, compared to the 33 million LGCs required annually under the Renewable Energy Target (RET) obligation, according to CER data cited on the page.

What services does Northmore Gordon offer related to LGCs and renewable energy systems?

Northmore Gordon is accredited by the Clean Energy Regulator to register Solar PV, Wind, and Hydro systems (power stations), enabling it to create LGCs for both behind-the-meter (BTM) business systems and grid-connected solar farms for investors. The company has been trading certificates for more than a decade and can provide contracts to reduce volatility, shore up investment plans, or supply LGCs and other certificates to meet renewable energy targets or emissions reduction goals. It also offers complete Net Zero Roadmaps, Carbon Neutral accreditations, and carbon reduction pathways.

How does eligibility for LGCs compare to Small-scale Technology Certificates (STCs) according to broader guidance?

According to supporting guidance on renewable certificate pathways, LGCs and STCs should not be treated as interchangeable, as they have different eligibility, creation, and use rules. Eligibility depends on factors such as technology type, capacity thresholds, output profile, and system changes, and certificate pathways should be evaluated separately from other financial support mechanisms like grants and finance.

Images on This Page