Market Update | 18 September 2026

• Updated timelines for the expansion of the SRES to include solar systems between 100kW and 1MW

• VEU consults on proposed changes to large energy user exemptions

• VEU expands Measurement and Verification methods

Expansion of PV eligibility under the SRES – updated timelines

Yesterday the Australian Government legislated the expanded SRES to include eligible solar PV systems between 100kW and 1MW.

From 1 October 2026, eligible systems installed at commercial, industrial, agricultural or community sites will be able to generate STCs. Previously, solar systems above 100kW were generally covered by the LRET and generated LGCs. 

Under the new arrangements, eligible systems will receive a fixed five-year deeming period for STC creation, regardless of the year of installation. Systems under 100kW will continue to have a declining deeming period year on year to 2030. Systems will also need to meet the relevant eligibility, accreditation, planning, electrical safety and network requirements.

While the program is live from October 1st for Ecovantage to accept STC applications, the CER will not have systems ready for project submission until mid to late November. Read more details on the submission and payment timing in this Feature post.

VEU Consults on Proposed Changes to Large Energy User Exemptions

The Victorian Government is currently consulting on proposed changes to the Large Energy User exemption framework under the VEU program.

Under the current arrangements, certain Scheduled Activity Premises are exempt from VEU program costs but can voluntarily opt in to access VEEC incentives. Once registered, these businesses currently have until 1 January of the second calendar year after their first VEEC registration before becoming liable for VEU program costs.

The proposed Large Energy User Access Initiative would extend this opt-in period from two years to five years. The change is intended to give eligible large energy users more time to undertake energy efficiency and decarbonisation projects and access VEU incentives before program costs apply.

For energy efficiency providers and large energy users, the proposed change could provide a longer window to plan and deliver eligible projects while accessing VEEC incentives.

VEU Expands M&V Methods

In an exciting release, the VEU program is expanding its M&V framework, with four new Specified Measurement Methods commencing 1 October 2026.

The new methods are designed to provide more defined approaches for measuring energy savings and calculating greenhouse gas emissions reductions for industrial projects. They include electric Thermal Energy Storage (eTES) direct measurement, heat demand reduction, gas efficiency improvement direct measurement, and behind-the-meter biogas direct measurement.

For commercial and industrial energy users, the expanded framework provides additional pathways for projects that may not fit traditional VEU activities. It also provides greater clarity around the data and measurement requirements needed to create certificates in a streamlined approach.

Please reach out directly to establish project feasibility and requirements for any upcoming projects under the newly established methods.

Weekly Market Update | 13 – 17 July 2026

Large-Scale Generation Certificates (LGCs)

The LGC market had continued downward pressure on pricing throughout the week, which saw the price drop by $0.80, or 10%, to finish the week at $7.10.

The forward markets experienced a similar downward trend, with significant declines recorded across nearly all vintages.

• • Cal 26 – down $0.85 to $7.15
  • Cal 27 – down $1.00 to $7.40
  • Cal 28 – down $1.10 to $6.90
  • Cal 29 – down $0.05 to $6.20
  • Cal 30 – down $1.05 to $5.20

At these prices, and with the new SRES set to include solar systems from 100kW up to 1MW from October 1, it seems inevitable that STCs will take over from LGCs in generating incentives for new mid-size solar systems.

And with the much anticipated explosion in the construction of new Data Centres it would appear that LGCs currently represent outstanding value for these new facilities to offset their non-renewable energy consumption.

Victorian Energy Efficiency Certificates (VEECs)

A total of 85k VEECs exchanged on the spot across the week, which saw VEEC spot price finish the week unchanged at $86.50. However some fluctuations occurred around this value, which saw the price dip to $85.90, before then bouncing back to $86.75, before a small 5k parcel rounded off the week back at $86.50.

Trading on the forward markets was light, with the only activity recorded occurring at the front end of the week. A small strip 5k in March and April 27 traded at $87.50, followed the next day with the same size strip in June and July 27 at a less optimistic $85.75.

Energy Saving Certificates (ESCs)

While ESC registrations increased versus last week, at 22,853 they remain low compared with historical trends. These registrations were solely for activities under the HEER method.

Spot trading was reasonably healthy, with 455k certificates exchanging on the spot market across the week. While the week culminated with a 100k parcel at $29.85, a rise of $0.60 across the week, it was a somewhat bumpy ride with the price initially rising, before falling back mid-week and then rising once again toward the end of the week. 

The forward markets were relatively quiet – with a series of small strip trades covering October 26 through to January 27 on Monday exchanging at $30.00, which were, in the main, slightly higher than their previous positions.

Peak Reduction Certificates (PRCs)

Trading on the PRC spot market was observed during the first half of the week, with a total of  220k certificates changing hands. The price remained rock solid at $3.35.

No activities were recorded on the forward markets.

Stricter requirements related to HVAC install compliance and planning approval delays for the new commercial battery programs may hold back PRC creation and trading in the short term.

Australian Carbon Credit Units (ACCUs)

The generic ACCU spot market edged back this week, with a 50k initially exchanging at $38.00, which was $0.40 lower than the week’s opening price. The price then partially recovered on Monday with 75k trading at $38.25, which is where it remained for the rest of the week.

The No Avoided Deforestation (AD) spot market was more active, particularly mid-week, which saw 3 parcels totalling 95k trading slightly higher at $38.30. The price then drifted back across multiple parcels on Wednesday, including a closing trade of 50k back at $38.15. There was some activity on the No AD forward markets, with 50k in March 27 trading at $38.75, a decline of $0.25, and 25k trading in April 27 at $39.25, which stepped back by $0.45.

Two trades totalling 30k were recorded on the Human Induced Regeneration (HIR) spot market, at $38.00, which was a $0.40 decline week on week.

No trades were reported on any of the method specific markets.

Small-Scale Technology Certificates (STCs)

Only light activity was observed this week, with just 60k trading on the spot market on Tuesday. Of these a small parcel of 10k traded at $39.90, a rise of $0.05, which is where it remained for the rest of the week.

The forward markets were inactive and the clearing house surplus was little changed at just over 4 million certificates.

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.