Carbon Credits & Energy Certificate Programs
Helping Businesses Unlock the Value of Renewable Energy
Transitioning to renewable energy is about more than reducing electricity costs. Depending on your project, system size, technology, and location, your business may also be eligible for government-backed energy certificate programs that support Australia’s transition to a lower-emissions economy.
At Standout Solar, we help businesses understand the renewable energy certificates, energy efficiency schemes, and carbon market opportunities that may be relevant to their commercial projects. Our team provides practical guidance so you can make informed decisions with confidence.
Understanding Australia's Energy Certificate Programs
Australia operates several renewable energy and emissions reduction programs administered by the Australian Government and individual state governments.
These programs encourage businesses to invest in renewable energy, improve energy efficiency, reduce electricity demand during peak periods, and lower greenhouse gas emissions.
Not every project qualifies for every certificate program. Eligibility depends on the applicable legislation, technology, system size, location, and accreditation requirements.
Depending on the project, certificates may:
Reduce the upfront cost of eligible renewable energy systems.
Create financial value through tradeable certificates.
Support sustainability and Environmental, Social and Governance (ESG) objectives.
Encourage investment in cleaner energy technologies.
Federal Renewable Energy Programs
STCs
Small-scale Technology Certificates
Small-scale Technology Certificates (STCs) are issued under the Australian Government’s Small-scale Renewable Energy Scheme (SRES).
For eligible small-scale renewable energy systems, including qualifying solar PV systems and eligible battery installations under the current program rules, STCs are commonly assigned to an installer or registered agent in exchange for an upfront discount on the installation cost. The number of certificates available depends on factors such as system size, installation date, location, and current legislation.
From 1 May 2026, eligible battery systems are also able to generate STCs under the Cheaper Home Batteries Program, with certificate calculations based on usable battery capacity and scheduled reductions over time until the scheme concludes in 2030.
LCGs
Large-scale Generation Certificates
Commercial renewable energy systems above the small-scale threshold may be eligible to create Large-scale Generation Certificates (LGCs) under the Large-scale Renewable Energy Target (LRET).
Each LGC represents one megawatt-hour (MWh) of eligible renewable electricity generated by an accredited power station. These certificates may be sold to liable entities or voluntarily surrendered to support renewable electricity claims, depending on the project’s objectives and regulatory requirements.
ACCUs
Australian Carbon Credit Units
Australian Carbon Credit Units (ACCUs) are Australia’s national carbon credit issued under the ACCU Scheme, administered by the Clean Energy Regulator.
One ACCU represents one tonne of carbon dioxide equivalent (CO₂-e) that has been avoided or removed through an eligible registered project. Eligible ACCU projects extend beyond solar and may include activities such as vegetation management, agriculture, waste management, industrial improvements, transport, and approved energy-related projects that meet strict legislative requirements.
ACCUs can be traded or surrendered to help organisations meet emissions reduction objectives, provided the project satisfies the requirements of an approved ACCU methodology. Installing a commercial solar system alone does not automatically generate ACCUs.
NSW Energy Security Safeguard Programs
Businesses operating in New South Wales may also have access to additional state-based programs under the Energy Security Safeguard.
ESS
Energy Savings Scheme
The Energy Savings Scheme (ESS) provides financial incentives for eligible energy efficiency improvements completed by homes and businesses throughout New South Wales.
Rather than focusing solely on renewable energy generation, the ESS encourages businesses to reduce energy consumption by installing eligible energy-efficient technologies and equipment.
The Scheme commenced in 2009 and is legislated to continue until 2050, supporting NSW’s net zero objectives. Financial incentives are delivered through Energy Savings Certificates (ESCs) created by Accredited Certificate Providers for eligible projects.
PDRS
Peak Demand Reduction Scheme
The Peak Demand Reduction Scheme (PDRS) encourages projects that reduce electricity demand during periods of peak network demand.
Eligible activities may include approved battery installations, Virtual Power Plants (VPPs), air conditioning upgrades, refrigerated cabinets, pool pumps, and other qualifying technologies.
The scheme operates through Peak Reduction Certificates (PRCs), which are created by Accredited Certificate Providers for eligible activities.
From 1 July 2026, updated Scheme Rules came into effect. Additional commercial battery activities—BESS3 (apartments), BESS4 (small and medium businesses), and BESS5 (commercial and industrial businesses)—are scheduled to commence on 1 September 2026, subject to the Scheme Rules.
Which Programs Could Apply to Your Business?
Every commercial project is different.
The certificates or incentives available to your business will depend on several factors, including:
Business location
System capacity
Solar and battery configuration
Energy consumption profile
Applicable federal or state legislation
Technology eligibility
Accreditation requirements
During your commercial energy assessment, our team can help identify which government programs may be relevant to your project.
Carbon Credits vs Renewable Energy Certificates
Although these terms are often used interchangeably, they serve different purposes.
Program
Purpose
STCs
Provide an upfront financial benefit for eligible small-scale renewable energy systems.
LGCs
Recognise renewable electricity generated by eligible accredited large-scale renewable energy systems.
ACCUs
Recognise verified greenhouse gas emissions reductions or carbon sequestration achieved through eligible registered projects.
ESCs
Reward eligible energy efficiency improvements completed under the NSW Energy Savings Scheme.
PRCs
Reward eligible activities that reduce electricity demand during peak periods under the NSW Peak Demand Reduction Scheme.
How Standout Solar Can Help
Understanding Australia’s renewable energy programs can be complex, particularly when multiple federal and state schemes may apply.
Our role is to provide practical advice so your business can make informed decisions about renewable energy investments.
Our team helps businesses by:
Assessing commercial energy requirements
Identifying relevant renewable energy programs
Explaining available certificate opportunities
Working with accredited providers where required
Supporting project planning from design through installation
Helping businesses understand future opportunities as government programs evolve
Frequently Asked Questions
Does every commercial solar project receive certificates?
No. Eligibility depends on the specific program, system size, technology, project location, and applicable government requirements.
Can installing solar automatically generate carbon credits?
No. Installing solar alone does not automatically generate Australian Carbon Credit Units (ACCUs). ACCUs are issued only to eligible projects that comply with approved methodologies under the ACCU Scheme.
What is the difference between STCs and LGCs?
Generally, STCs apply to eligible small-scale renewable energy systems under the Small-scale Renewable Energy Scheme, while LGCs are associated with accredited large-scale renewable electricity generation under the Large-scale Renewable Energy Target.
What are Peak Reduction Certificates (PRCs)?
PRCs are certificates created under the NSW Peak Demand Reduction Scheme for eligible activities that reduce electricity demand during peak periods.
Will Standout Solar manage the certificate process?
Where applicable, we’ll explain available programs, identify potential opportunities, and work alongside accredited providers to support eligible projects.
Build a More Sustainable Energy Future
Government incentive programs continue to evolve, creating new opportunities for businesses investing in renewable energy and energy efficiency.
Whether you’re considering commercial solar, battery storage, energy management solutions, or future participation in certificate schemes, Standout Solar can help you understand the opportunities available and develop a solution that supports your business today and into the future.