• • Australia hits a historic 50% renewables milestone.

  • Victoria’s to get free midday power & state-wide electrification rebates.

  • LGCs maintained a steady rhythm this week.

  • VEECs continues its strengthening, anchoring at $88.00.

  • ESCs slight softening towards closing.

  • PRCs saw another quiet week.

  • ACCUs gradual marginal decline.

  • STCs spot firmed up at $39.55.

Cheaper Home Batteries Program a Success, Australia Hits a Historic 50% Milestone.

Federal Minister for Climate Change and Energy, Chris Bowen, has used his keynote at the Smart Energy Conference 2026 to reveal the staggering success of the Cheaper Home Batteries Program. Since its 2025 launch, Australians have installed over 380,000 systems, injecting 10.7 GWh of storage capacity into the grid. Bowen noted that the program’s adoption has far outpaced the government’s EV tax incentives, with the Clean Energy Regulator processing roughly 8,000 applications weekly. This surge in demand has seen the scheme’s projected support swell from an initial $2.3 billion to a forecasted $7.2 billion by 2030.

The Minister also celebrated a historic shift in the national energy mix, confirming that renewables provided over 50% of Australia’s electricity during the final quarter of 2025 – a first for the country. While this momentum is undeniable, all eyes are now on the May Budget scheduled for next week. The industry is eagerly awaiting the government’s next announcement, as potential modifications to the subsidy seek to balance its incredible popularity with sustainable, long-term funding.

 

Victoria’s 2026 Budget: Free Midday Power & State-Wide Electrification Rebates.

The Victorian Government’s latest budget continues its aggressive push toward electrification, offering substantial new support to help households and businesses slash their energy costs. A centerpiece of the announcement is the $28 million investment in energy-efficient hot water systems, providing rebates of up to $1,400 for locally-made units. This builds on a track record of over 342,000 solar installations and 2.4 million efficiency upgrades already delivered across the state. Furthermore, the budget prioritises the social sector and future workforce, allocating $10 million for community housing upgrades and another $15 million to upskill plumbers and tradespeople in renewable energy technologies.

In a first for the state, the government is leveraging its high midday solar generation to launch the Victorian Midday Power Saver. This initiative offers roughly 2.6 million eligible households three hours of free electricity every single day during the middle of the day. By shifting energy-intensive tasks to this free window, families can save an average of $300 annually, with savings potentially climbing to over $1,070 for those with integrated solar and battery systems. Combined with streamlined environmental approvals for new projects, these measures are designed to drive down long-term wholesale prices while providing immediate cost-of-living relief.

Weekly Market Update | 4 – 8 May 2026.

Large-Scale Generation Certificates (LGCs)

The LGC spot market maintained a steady rhythm this week, consolidating largely around the $2.10 mark. After Monday’s opening spread between $2.00 and $2.20, prices settled at $2.10 through midweek. Thursday saw peak volume with 70k clearing at $2.10, despite a minor $2.00 outlier. The market softened slightly on Friday, with trades drifting to close at $2.05.

The forward market saw heavy volume in late-dated vintages. CAL 29 and CAL 30 established a midweek ceiling at $2.55, while CAL 28 cleared lower at $2.25. The week focused primarily on CAL 27 volume wise, which opened at $2.45 on Wednesday before facing downward pressure to finish the week at $2.30.

Victorian Energy Efficiency Certificates (VEECs)

The VEEC spot market maintained a solid footing this week, with pricing anchored around the $88.00 mark. Trading opened with a brief peak of $88.50 on Monday before settling into steady $88.00 trades through Tuesday and Wednesday. After a quiet Thursday with no reported activity, the market closed on a slightly incline on Friday, moving from the weekly floor back up to $88.25 in a 15k parcel. 

This movement is reflected in the forward market as well this week, with pricing largely concentrated between the $88.00 and $89.00 range. Monday opened with May-26 and Dec-26 expiries both hitting $89.00, supported by a mid-year strip at $88.00. Following a quiet Tuesday, Wednesday saw a cluster of activity across late 2026 and 2027 vintages, all consolidating at the $88.00 mark. The week concluded on Friday with pricing for late 2026 pushed up to $88.30 via strips and individual parcels, while early 2027 expiries (February and April) signaled long-term confidence by clearing at $88.50.

Energy Saving Certificates (ESCs)

The ESC spot market consolidated around $27.50 this week before softening. After starting Monday between $27.50 and $27.75, prices briefly peaked at $28.00 on Wednesday. However, heavy volume on Thursday anchored the market at $27.50. Friday was the week’s most active session, seeing a dip to a $27.25 low in a 50k trade before late-session interest pulled pricing back toward $27.50.

The forward market mirrored this trend, retracing after mid-week gains. June and July 2026 expiries climbed from $27.70 to a $28.25 peak by Wednesday, while a December 2027 contract cleared at $29.60. Momentum shifted on Friday as July 2026 traded back down to $27.50, erasing earlier gains.

Peak Reduction Certificates (PRCs)

A quiet week for PRCs this week with two 50k parcels going through at the start and mid week at $3.05 and no other trades reported, while the forward market saw more activities. Monday opened with a May-26 trade at $3.05 followed by trades between June and October 2026 at the same level of $3.05.

Australian Carbon Credit Units (ACCUs)

The ACCU spot market experienced a gradual softening this week, with prices retreating from a Monday high of $37.70 to find a steady floor around the $37.30–$37.50 range. Liquidity peaked on Tuesday and Thursday, highlighted by significant Generic (No AD) of 70k and 50k respectively. While Thursday saw a brief dip toward $37.30, the market showed recovery on Friday, with multiple parcels clearing at $37.50 and a final trade at $37.55.

Only one forward trade went through for Dec-26 for a 5k parcel at $37.70. While two trades for ACCU HIR went through at a consistent $37.50 for a 10k and 5k trade.

Small-Scale Technology Certificates (STCs)

The STC spot market saw high-volume activity this week, with prices softening slightly after a strong start. Monday opened with large volume clearing over 200k units at $39.60; however, shifted on Tuesday as the market settled at $39.55. This level is maintained, supporting high volume on Wednesday, including a 100k parcel, despite a brief outlier trade at $39.50. Trading remained consistent through Thursday and Friday, with the market firmly stabilised at $39.55.

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.