A solar small generation unit (SGU) must be 100 kW or less to qualify for small-scale technology certificates (STCs). Any system that is over 100 kW, or an existing solar SGU expanding over 100 kW, must be registered as a power station under the large-scale renewable energy target (LRET) scheme to create Renewable Energy Certificates.
Expanding a solar SGU before your STCs are passed has risks
You may not be eligible to re-create STCs if the initial claim is failed. If you claim STCs that you are not eligible for, you may be asked to surrender those certificates or other compliance action may be taken.
Requirements apply to applications being made for power stations where there is a pre-existing small generation unit (SGU) at the site.
If a pre-existing SGU has had small-scale technology certificates created and registered (passed) under the Small-scale Renewable Energy Scheme (SRES) - the SGU is referred to as a 'credited pre-existing SGU'.
When additional capacity is added to a credited pre-existing SGU (resulting in total system capacity of more than 100 kW), the credited pre-existing SGU and additional capacity will be taken together to form a single power station.
It is important to consider timing when expanding an SGU into a power station, particularly if the two installations are occurring within a short timeframe.
- Any STCs claimed for an SGU must meet all eligibility requirements when the systems are taken to be installed (which includes electrical sign-off) and at the time STCs are created in the REC Registry. This includes all compliance paperwork and installer on-site verification.
- STCs created from pre-existing SGUs that are failed by the Clean Energy Regulator (CER) cannot be recreated if additional capacity has been installed to make the system over 100 kW. This is because the expanded system no longer meets the definition of an SGU (as system capacity is greater than 100 kW).
- The CER will seek evidence that the SGU was 100 kW or less at the time STCs were created if electrical sign-off is completed on the same day as the system expansion occurs.
- This could take the form of time stamped photos of connections being made and other commissioning activities.
- The CER acknowledges other installation activities may be underway, but if there is more than 100 kW installed on the day the unit is first able to produce and deliver electricity, that capacity will not be eligible for STCs.
Application requirements
Applications for accreditation of these power stations need to meet the following requirements.
- The application must include details of the components for both the credited pre-existing SGU and the additional Large-scale Renewable Energy Target (LRET) components. All components should be identified on an electrical single line diagram. For more information, see
Components and electrical single line diagram.
- The CER uses the power station name in the REC Registry to identify that it is an upgraded pre-existing SGU and to assist with processing large-scale generation certificates (LGCs) claims. Please use the following naming convention for upgraded SGU systems:
- 'Power station name - Solar w SGU – State'.
- The application must demonstrate that the whole power station is operated in accordance with all relevant Commonwealth, state, territory and local government planning and approval requirements.
- The capacity of the power station is the sum of both the credited pre-existing SGU and the additional LRET components. LGCs can only be created for electricity generated from the additional capacity and must not be created in respect of electricity generated by the credited pre-existing SGU.
- The metering arrangements of the power station must clearly separate credited pre-existing SGU components to ensure no LGCs are claimed from SGU components.
- You may not be eligible for LGCs if metering is insufficient to determine which electricity comes from new components as opposed to the SGU.
Large-scale generation certificate eligibility
Once an upgraded system is accredited as a power station, nominated persons must not claim LGCs for electricity generated from a credited pre-existing SGU that is a part of a power station.
To provide assurance that claims are only being made for electricity from the expanded LRET capacity, LRET components of the power station should be metered separately to the credited pre-existing SGU components. If the LRET capacity is not metered separately, nominated persons must demonstrate how they are accurately measuring electricity that forms the basis of LGC claims.
The CER has processes to identify power stations that invalidly claim LGCs for electricity generated from credited pre-existing SGUs.
For more information about defining a device and boundaries, see
defining small-scale and large-scale solar systems. This can assist in determining whether multiple SGUs or power stations at the same address or site should be considered separately, or collectively under the SRES and LRET.