• CER releases more updates surrounding Battery STCs
• VEU Update Activity 44 changes delayed – now effective from 25 July

CER releases more updates surrounding Battery STCs.

The CER has released further updates for the industry surrounding compliance requirements for the Battery STC program launched on July 1st. All updates are summarised below:

• Guidance on Stackable Batteries 
  • SAA accredited installers must re-certify the entire system (including electrical connections) as safe and compliant.
  • Ensure additional modules are fully compatible with the existing system and meet manufacturer specifications.
  • Adhere to all state/territory requirements (e.g., inspections, DNSP notifications).
  • The accredited installer or designer is responsible for any non-compliance identified in the final system, covering both new and existing components.
  • Only new battery modules added are eligible for BSTC claims, not the entire expanded system. Claiming for the whole system’s capacity is considered fraud.
  • The final configuration of the stackable battery system must be on the Clean Energy Council (CEC)’s approved product list at the date of certification. If any component (e.g., battery management module) no longer matches the approved product list, the system becomes ineligible.

• SAA’s Transitional Arrangements for Maximum Daily Installations 
  • For systems roughed-in between 6 April and 30 June 2025 and considered ‘ready to commission’. These arrangements are active from 1 July to 10 August 2025.
  • What Constitutes a ‘Ready to Commission’ System:
    • A solar battery roughed-in between 6 April and 30 June.
    • A solar PV system and a solar battery both roughed-in at one address between 6 April and 30 June (this combination is counted as a single ‘ready to commission’ system).
  • Daily Sign-Off Combinations (Until 10 August 2025): During this period, installers can sign off ONE of the following combinations per day:
    • Two (2) solar battery installations
    • Two (2) solar PV system installations
    • One (1) solar PV system installation AND one (1) solar battery installation
    • One (1) solar PV system installation AND two (2) ‘ready to commission’ systems
    • One (1) solar battery system installation AND two (2) ‘ready to commission’ systems
    • Four (4) ‘ready to commission’ systems.

VEU Update Activity 44 changes delayed – now effective from 25 July.

The Department of Energy, Environment and Climate Action (DEECA) released an update to Activity 44 changes this week – shocking the industry with under 5 days’ notice given for a change in eligibility. After a notable volume of feedback from the industry, with installations booked in advance suddenly ineligible, the changes have been extended to now come into play on 25 July.

Key Changes to Activity 44:

• Only Heat Pump Water Heaters (HPWHs) with an insulated storage volume greater than 700 litres (L) are eligible.
• For multi-tank systems, the average insulated storage volume must be greater than 700 L.
• VEEC Calculations:
• Products with >700L insulated storage and >10 kW thermal capacity are unaffected.
• Products meeting new minimums but with <10 kW thermal capacity will now be subject to a scaling load factor (max 1).
• Minimum Co-payment: Increased from $200 to $1,000.
• Eligibility Criteria: Now reference average values for insulated storage and thermal capacity of each registered product.

This will mean Accredited Persons (APs) will not be able to submit activities for Activity 44 upgrades completed on or after 25th July 2025 that do not meet the above criteria.

Certificate Market Update | 11 July 2025

Large-Scale Generation Certificates (LGCs)

The LGC spot market saw a steady decline throughout the week with prices falling from an initial range of $15.00-$15.50 on Tuesday to a firm $14.00 by Friday. This downward trend, particularly noticeable from Wednesday onwards, indicates increasing sell side pressure with high availability of LGCs circulating the market.

The LGC forward market experienced a notable decline across all reported calendar years (CAL 25, CAL 26, and CAL 27) over the week. CAL 25 initially held steady around $15.75-$16.00 before dropping to $15.00 by Wednesday, while CAL 26 saw a more significant fall from $15.75 to as low as $14.50. CAL 27 opened the week on Wednesday at $13.00 before closing the week on Thursday settling at $11.75.

Victorian Energy Efficiency Certificates (VEECs)

In contrast with other certificate performances this week, the VEEC spot market experienced a significant price increase this week. Opening Monday in the $93.75-$94.00 range, prices remained stable on Tuesday before increasing throughout the week. By Wednesday, trades reached $96.00, experiencing a significant spike on Thursday where prices touched highs of $105.00. Friday saw moderation after the surge and a widening of bid and offer prices following the extension to the Activity 44 change announcement.

The VEEC forward market also saw strong gains this week. Trades opened at around $94.00-$94.50 on Monday, then increased by Thursday, with Jul25 and Aug25 reaching $106.00 and Dec26 hitting $100.00. While the increase for Dec26 did not last long, before settling to $95.00 by Friday.

This volatility can be attributed to the announcement of major changes to the C&I Hot Water activity by the VEU earlier this week which will likely strip VEEC supply back further.

Energy Saving Certificates (ESCs)

The ESC market showed price volatility throughout the week with a series of price fluctuations throughout the week. The spot opened Monday and Friday stable at $22.00. It opened quietly on Monday at $22.00, then experienced a slight dip on Tuesday and Wednesday, trading around $21.50-$21.75. Thursday saw a more significant drop to $21.00, however, Friday brought a rebound and surge in activity, with prices jumping from $21.50 early in the day to a peak of $22.50 before settling back slightly to $22.00. The strong 30 day trend coincides with mid-term limited ESC creation volumes.

Peak Reduction Certificates (PRCs)

The PRC market has stabilised around the $3.00 mark after weeks of increasing prices, a trend largely attributed to the removal of BESS1 activities from the list of eligible PDRS creations. This policy change has significantly curbed PRC creation, with creations dropping by approximately 50% since early July. As the September 30th deadline approaches and demand for BSTCs continues to outstrip participation under the PDRS, the market is naturally reflecting the reduced supply from BESS1’s phasing out. This week, the spot market held remarkably firm at $3.00 across all trades. The forward market also mirrors this stability, with Jul25 and Aug25 contracts maintaining $3.00, and Dec25 seeing a slight uptick to $3.05.

Australian Carbon Credit Units (ACCUs)

The generic ACCU spot market saw less action with a general price decline throughout the week. The market opened on Monday with No AD trading at $35.50 followed by a same day increase to $35.60 and a steady decline throughout the day. However, after no reported trades on Tuesday, prices softened on Wednesday with No AD ACCUs trading slightly lower at $35.05-$35.10 and a generic spot trade at $34.80. No AD ACCUs settled at $34.85 by Friday and no further trades were reported in the spot. No trades were reported on the forward or option markets this week.

HIR ACCU spot prices saw a marginal decrease this week. Starting from $35.05 on Wednesday to end at $34.80-$34.85 on Friday. No other trades were reported.

Small-Scale Technology Certificates (STCs)

With the clearing house remaining in a deficit of 1.5 million STCs, the STC spot market saw no reported trades this week while price remained at a high of $39.95. The forward market saw a strip of 15k per month at $39.80 between Aug25-Feb26 on Monday with no other trades reported throughout the week.

Certificates spot prices & graphs available at Market Update >

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.