Market Update | 25 September 2026

• The State of Victoria Imposes New Rules Concerning Data Centres
• Plug-In Solar in Australia for Renters.
• LGC market holds steady, ESC creation continues to sit below target, and Solar Retailers prepare for the Mid-scale STC launch in 5 days time

The State of Victoria Imposes New Rules Concerning Data Centres.

The Victorian government has announced a new Sustainable Data Centre Action Plan requiring all future data centres in the state to secure their own renewable energy supply and energy storage, while also paying for necessary grid connection costs and network upgrades. To address mounting public concern over resource consumption, the proposed regulations also mandate that operators use recycled or non-drinking water for facility cooling systems rather than drawing on the public drinking water supply.

In addition to energy and water restrictions, the rules establish strict zoning limits that ban data centre construction in residential areas, near schools or childcare facilities, and in under-resourced rural locations. Developers will also be held responsible for managing operational and construction traffic. Proclaimed by Premier Ben Carroll as the country’s strongest data centre regulations, the policy aims to balance the booming $150 billion AI and data infrastructure investment with environmental sustainability and local community protection.

Plug-In Solar in Australia for Renters.

On Friday, September 11, Australia’s Energy and Climate Change Ministerial Council agreed to explore the safe use of plug-in solar portable photovoltaic systems and optional batteries that plug into standard wall outlets. This technology offers cost-of-living relief and renewable energy access to renters, apartment dwellers, and lower-income households who cannot afford or install traditional rooftop solar. While often called “balcony solar,” estimates indicate that up to two-thirds of the Australian households best suited for these systems live in detached or semi-detached homes, meaning front and backyards will likely see heavy adoption. However, precise toolsets, safety standards tailored to Australian conditions, and realistic financial projections are still required to accurately predict benefits across diverse electricity tariffs and usage patterns.

Unlocking these social and environmental benefits has the potential to require more than simple legal updates. While adapting tenancy and strata laws is a critical first step, Australia’s low rental vacancy rates, state-specific regulations, and landlord dynamics present unique hurdles that may need boosted legal protections for tenants, and consideration of insurance hurdles for landlords. To ensure safe, fair, and widespread uptake, governments will need to explore appropriate resourcing for rental tribunals, targeted subsidies for low-income residents, and support for community or retailer ownership models. Accompanied by practical safety education and pilot testing, plug-in solar can serve as an inclusive tool for the clean energy transition, though it remains a complement to energy-efficient housing and systemic renter protections.

Weekly Market Update | 21 – 25 September 2026

Large-Scale Generation Certificates (LGCs)

LGCs again consolidated a higher Spot rate this week when compared to the previous lengthy period below $3.00. The Spot market opened and closed at $8.00, with midweek trades agreeing between $7.75-$8.50 before settling back at $8.00. Looking at the past 8 week period, the market has seen an average price of $7.73, with a low of $6.45 and a high of $9.00. The introduction of Mid-Scale STCs for Solar PV between 100kW-1MW, set to launch on October 1st, will strip a primary volume of new generating assets out of the LRET that would have previously contributed to LGC supply. Additionally, the current LGC price means that existing registered Power Stations see limited benefit to registering LGCs and may opt to cease creating until the price recovers further – further reducing available LGC supply.

Victorian Energy Efficiency Certificates (VEECs)

This week the VEEC price softened slightly from $86.50 down to $85.80. Over the past 30 days the Spot price has sat within a range of $83.00 to $87.00 with a positive trend. On the current VEEC supply atmosphere, 85% of all creation this year can be attributed to the Activity 6 Space Heating & Cooling activity. The balance is a mix of Water Heating, PBA M&V, Lighting and Weather Sealing. On 30 September changes to Activity 6 are coming into effect after a 3 month gazettal period, which will likely see VEECs created from the activity decline.

Energy Saving Certificates (ESCs)

The ESC market opened the week at $29.50, and primarily traded between $29.40-29.45 throughout the course of the week. ESC supply is still very soft following the cessation of the Commercial Lighting activity, with an average ~37k ESCs created per week against a required volume to meet target of ~115k.

Peak Reduction Certificates (PRCs)

The PRC market continues to sit at a high $3.35 as actual creation continues to sit below target. The newly launched PDRS BESS activities are yet to see PRCs registered, and will likely take several months before the new ‘normal’ creation levels are established. This is primarily due to the scale of projects under the activity and associated project approval time delays, in addition to a large portion of the market being subject to pre-registration audits.

Australian Carbon Credit Units (ACCUs)

The ACCU spot markets saw moderate activity this week, with the generic Spot opening at $38.25 and closing higher at $38.50. The Spot excluding Avoided Deforestation methods opened and closed in tandem with the generic spot, while the HIR Spot opened lower at $38.00 and closed at $38.50.

Small-Scale Technology Certificates (STCs)

With a mere 5 days left until the launch of the ‘Mid-scale STC’ expansion, allowing the creation of STCs for Solar PV systems between 100kW-1MW, the STC spot traded down from $39.90 to $39.85. While preliminary activity and market sentiment are extremely positive surrounding uptake, the impact on STC supply will be delayed until late November to December. This is because eligible systems may be installed from October 1, though the CER’s portal will not be able to accept STC submissions (and therefore register STCs) until late November.

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.