Renewable energy certificates
Renewable energy certificates (RECs) 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.
Small-scale technology certificates
Small-scale technology certificates (STCs) are created for eligible installations of solar water heaters, air source heat pumps and small generation units (small-scale solar panels, wind and hydro-electricity systems). One STC is generally equivalent to:
- 1 MWh of renewable electricity generated by a small generation unit, or
- 1 MWh of electricity deemed to be displaced by the installation of solar water heaters or air source heat pumps.
Large-scale generation certificates
Large-scale renewable energy projects, such as wind and solar farms, and hydro-electric schemes, are entitled to create large-scale generation certificates (LGCs). One LGC is equivalent to:
- 1 MWh of renewable electricity generated above the power station baseline.
See large-scale generation certificates and small-scale technology certificates for more information.