• • Relief as LGCs rebound
  • VEECs hold steady
  • ESCs continue their charge
  • VEU opens Ceiling Insulation Consultation
  • ARENA boosts Australian solar manufacturing capacity

Consultation for introduction of VEU Ceiling Insulation activity now open.

The Victorian Government is proposing to invest $12 million to introduce ceiling insulation retrofits into the Victorian Energy Upgrades (VEU) program to improve energy efficiency, thermal comfort, and health benefits. This comes after an industry webinar last week, introducing the activity and requesting feedback on proposed regulations and product eligibility.

A robust safety and quality assurance regime will be developed with regulatory agencies, and efforts are underway to train and expand the insulation retrofit workforce. The inclusion of ceiling insulation into the VEU program will be staged to allow the industry to expand, with upgrades proposed to be undertaken by VEU-approved and accredited installers.

Further information can be found on the VEU insulation consultation web page.

 

Australian solar manufacturing to be boosted by ARENA funding.

The Australian Renewable Energy Agency (ARENA) has committed $45.5 million through the Solar Sunshot Program to boost Australia’s solar manufacturing.

• $34.5 million will fund Tindo, Australia’s sole solar module maker, to increase production from 20 MW to 180 MW and study a future 1 GW gigafactory.
• An additional $11 million is allocated for feasibility studies into upstream component manufacturing (polysilicon, ingots, and wafers) by Solquartz, Energus, and Stellar PV.

These investments aim to build a resilient local supply chain to help meet Australia’s 2050 emissions targets. While Round 1A funding has closed, Round 1B for feasibility studies is open, and a third round is planned for August.

To find out more, click here for information ARENA’s funding activities.

Weekly Market Update | 4 – 8 August 2025

Large-Scale Generation Certificates (LGCs)

The LGC market breathed a sigh of relief as it rebounded across vintages, after last week saw prices plunge into single digits. Steady increases throughout the week resulted in gains of around 20-25% in the spot, CAL25s CAL26s and CAL27s.

Trading volumes peaked on Wednesday with nearly 400,000 certificates exchanged in a lively session. A more moderate session followed on Thursday, which brought the spot and CAL25s up to $13.50 and CAL26s a shade lower at $13.00.

The CAL27s and CAL28s also gained ground, closing at $10.35 and $7.50, respectively.

As penned in last week’s Market Update and Aaron’s latest piece, it remains to be seen whether support for medium-scale renewables can return the LGC market to its once-stable environment that benefited end-users and investors alike.

Victorian Energy Efficiency Certificates (VEECs)

It was an atypically quiet week in the world of VEECs with little to no reported trades seeing spot slowly drift upwards to close marginally higher at $95.80, after Monday’s opening of $95.50.

This lack of action was mirrored in the forwards market with just a handful of parcels transacting with the most notable pair a 5k in March 2026 at $96.00 on Wednesday and a 25k in December 2025 at $97.50 on Thursday.

A lack of visibility in certificate creation volumes, following the introduction of the new VEU Registry, continues to drive uncertainty as traders struggle to establish a firm grasp on the market’s supply side. It is hoped that the scheme administrator is able to deliver on their promises of further system development that is forecasted to bring user functionality in line with the previous registry in the not too distant future.

Energy Saving Certificates (ESCs)

The recent recovery in the ESC market continued this week with another modest rise in both the spot and forwards markets.

After spot opened at $22.80, a string of trades throughout the week saw it reach a peak of $24.00 on Thursday – representing its strongest position in over 18 months – before closing a step lower at $23.75.

This rebound in pricing has been largely driven by a recent period of low supply, as July saw just under 180,000 certificates registered – down 300% over the same stretch 12 months ago.

Though the market liquidity surplus remains strong, it remains to be seen where meaningful certificate creation volumes will come from, should the proposed conclusion to the Commercial Lighting activity eventuate.

Peak Reduction Certificates (PRCs)

PRCs were largely quiet with Tuesday’s session seeing the lion’s share of the action – spot edged up from the previous day’s opening at $3.05, to close slightly higher at $3.08, where it remained for the rest of the week.

Registrations over the last 7 days logged at just over 890,000, representing a steep increase on the 3-week average of 427,000.

Australian Carbon Credit Units (ACCUs)

Early week trading appeared to suggest the recent rise in ACCUs was set to continue, as both the Generics and No Avoided Deforestation (No AD) spot markets increased again, as both climbed as high as $36.50.

However, this was short-lived, as both fell as the week progressed, before flattening out to close at $36.00.

Small-Scale Technology Certificates (STCs)

STCs were quiet as the Clearing House remained in a deficit of approximately 2,360,000 certificates at the time of writing.

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.