• • Cheaper Home Battery Program revamped to support continued success.

  • Victorian Energy Upgrade (VEU) program work plan schedule for 2026.

  • LGCs saw marginal softening this week.

  • VEECs remained stable throughout.

  • ESCs saw high trade volumes resulting in price softening.

  • PRCs creations increased 53% this week.

  • ACCUs softens with slight volatility.

  • STCs experienced a quiet week. 

Cheaper Home Battery Program revamped to support continued success.

In response to huge demand, which has seen approximately 160,000 batteries installed since the program launched less than 6-months ago, the Australian Government has announced a substantial expansion in funding for its Cheaper Home Batteries Program. The amount earmarked has more than tripled, rising from $2.3 billion to an estimated $7.2 billion over four years.

To help maintain the scheme’s ongoing financial sustainability, from 1 May 2026, two key rebate calculation inputs will change:

• • The STC factor will be reduced every six months rather than the previously planned annual adjustment, so the rebate values will decline more quickly.
  • The rebate amount will also be pared back for larger batteries.

These adjustments, which assume battery costs will continue to fall, aim to maintain the discount at around 30% across different battery sizes. Click here for more information.

Victorian Energy Upgrade (VEU) program work plan schedule for 2026.

The VEU has released its work plan for 2026, which includes a new activity and multiple consultations and reviews.

New activity

• • Residential insulation – commences in the first quarter (Q1 2026).

Consultations

• • Induction cook tops – 2025 consultation findings to be released in Q1 2026.
  • Industrial heat decarbonisation – to be released Q1, response provided in Q2 with changes to commence in Q3.
  • New Hydronic heat transfer activity – consultation to be released Q1, response provided in Q2.
  • Water heating, Space heating / cooling and Gas Efficiency consultations to be released in Q2, with responses to be provided in Q3.

In Q2 a consultation examining the Scheme’s exemption framework will commence, with findings to be released in Q3. Also in Q2, a review of the recently launched Commercial & Industrial (C&I) deemed solar program will be undertaken. And then in Q3 a new consultation looking at the targets for 2028-2030 will get underway.

 

Ecovantage will keep partners abreast of any scheme changes that result from these consultations.

Weekly Market Update | 15 – 19 December 2025.

Large-Scale Generation Certificates (LGCs)

The LGC spot market experienced a steady downward trend this week. After initially holding firm at $7.00 through Tuesday morning, the price began to decline to the $6.70 mark by mid-week and reached a weekly low of $6.50, representing a $0.50 (7%) drop across the week.

LGC forward market mirrored the spot market with a quiet softening this week, with prices trending downward. CAL 25 opened at $7.00 on Monday but slid to $6.65 by Friday, while CAL 26 saw more significant volatility, dropping from a high of $7.50 to finish at $6.85. CAL 27 also faced downward pressure mid-week, slipping from $6.50 to $6.45.

Victorian Energy Efficiency Certificates (VEECs)

The VEEC spot market remained stable throughout the week, with all reported activity occurring consistently at the $79.50 level. Trading volume remained steady from Monday through Wednesday. However, the week ended on a quiet note with no trades reported on Friday. No activity reported on the forward market.

Energy Saving Certificates (ESCs)

ESCs creations doubled since last week’s creation sitting at 132k ESCs, with most contributions coming from residential technology retrofits.

The ESC spot price experienced downward pressure early in the week before recovering to hit a weekly high on Friday. After opening at $22.90 on Monday, the market saw a significant increase in volume on Tuesday and Wednesday, which drove prices down to a mid-week floor of $22.60. However, this dip was short-lived toward the end of the week, with several large trades at the $23.00 mark on Friday.

Peak Reduction Certificates (PRCs)

PRC creations have increased by 53% from last week’s numbers totaling 558k certificates this week with the main driver being retrofits coming from HVAC. 

The PRC spot market saw light activity this week, with the price softening slightly from a Monday high of $2.90 to $2.88 by Wednesday. The PRC forward market saw a strong start on Monday with significant volume across the February, March, and May 2026 vintages at $2.90–$2.95, but activity stalled for the remainder of the week with no further trades reported.

Australian Carbon Credit Units (ACCUs)

The ACCU spot market exhibited a softening trend throughout the week. After opening the week with steady volume at $36.25, prices saw a slight mid-week uptick to $36.35 on Tuesday across smaller parcels, followed by a lull on Wednesday.This momentum failed to hold by Friday, as the market retraced to a weekly low of $36.10.

No AD ACCU spot market shows slight volatility this week, opening with varied pricing on Monday between $36.00 and $36.25 across multiple parcels. Values peaked on Tuesday at $36.35. By Friday, the market consolidated at a slightly lower range, with high-volume activity between $36.10 and $36.15.

The ACCU HIR spot price experienced minor volatility throughout the week, consolidating around the $36.25 mark despite a brief dip to $36.00 on Monday and a slight softening on Wednesday.

No trades reported on the forward market. 

Small-Scale Technology Certificates (STCs)

Quiet week for STCs this week with no trades reported while the clearing house remained in a deficit. The last BSTC purchase was made just Tuesday last week, bringing the total budget spend of 707mil, or 30.7% of the total budget. An announcement was made last week in regards to the expansion of the budget and the market is hoping to see this contribute to the longevity of the scheme.

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.