Liable entities may surrender renewable energy certificates through the
REC Registry to acquit their
large-scale generation certificate (LGC) or
small-scale technology certificate (STC) surrender liabilities under the
Renewable Energy (Electricity) Act 2000 (the Act), or to receive a refund for a paid large-scale generation shortfall charge.
Renewable energy certificates may also be
The Clean Energy Regulator recommends liable entities purchase certificates at least two weeks prior to a surrender deadline to allow for processing time. This is especially important if the liable entity wishes to purchase small-scale technology certificates from the
STC Clearing House.
Liable entities calculate the number of LGCs and STCs they are required to surrender by following the
calculating certificate liability processes
To acquit a LGC liability for an assessment year, liable entities must surrender LGCs in the
REC Registry by 14 February. LGCs are taken to be surrendered when the energy acquisition statement is lodged.
For example, to acquit an LGC surrender liability for the 2018 assessment year (electricity acquired between 1 January and 31 December 2018), a liable entity must surrender LGCs with their 2018 energy acquisition statement by 14 February 2019.
An energy acquisition statement must be lodged through the REC Registry, unless exceptional circumstances apply.
A liable entity may also surrender LGCs in other circumstances:
LGCs can be purchased from the open market and are typically available for purchase from certificate brokers. LGC prices can vary depending on a number of factors, including the fuel source, and supply and demand in the market.
A liable entity is only able to surrender a LGC for an assessment year if:
A liable entity must surrender an amount of
STCs in the
REC Registry each quarter of an assessment year. STC surrender liability for the fourth quarter of an assessment year must be made with the liable entity's energy acquisition statement for the year.
The surrender period for each quarter of an assessment year is as follows.
A liable entity may also surrender STCs in other circumstances, including:
STCs can be purchased from either the open market or the
STC clearing house.
In the open market, prices can vary depending on supply and demand for certificates. Sellers of STCs are typically agents, certificate brokers or individuals who have installed a small-scale renewable energy system.
The STC Clearing House is where STCs have a current fixed price of $40 plus GST. The agency recommends that you allow at least two weeks to purchase certificates from the STC clearing house.
A liable entity is only able to surrender a STC for a quarter of an assessment year if it is the registered owner of the certificate at the relevant time.
For certificates surrendered (other than voluntarily under section 28A of the Act or LGCs surrendered during the allowable refund period to obtain a refund for a paid large-scale generation shortfall charge), the surrender fee is eight cents per certificate. Certificate surrender fee invoices are issued via the REC Registry following lodgement of an energy acquisition statement.
If a liable entity surrenders under section 45A or 45C of the Act, the surrender fee invoice will be issued upon processing of that certificate surrender.
The liable entity must pay any surrender fees within 28 days to avoid incurring a debt to the Commonwealth.
For LGCs surrendered during the allowable refund period to obtain a refund for a paid large-scale generation shortfall charge, an administration fee is withheld from the amount to be refunded. The calculation of the administration fee is set out in sub-regulation 28(5) of the Renewable Energy (Electricity) Regulations 2001.
There is no surrender fee for certificates voluntarily surrendered under section 28A.
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