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  4. Buying LGCs
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How to buy LGCs

This is a guide for traders and businesses such as liable entities.  It explains how to purchase large-scale generation certificates (LGCs) through the open LGC market.

Use this information if you wish to buy LGCs created by:

  • an accredited renewable energy power station
  • an eligible installation of a solar water heater, heat pump, small-scale solar panel, wind, or hydro system (for systems installed prior to 1 January 2011).

While most LGCs are purchased by liable entities to fulfil their legal requirements under the Act, anyone with an appropriate REC Registry account may trade in LGCs.

  • Payment for LGCs is negotiated outside of the REC Registry.
  • The price varies due to demand and supply of LGCs.
  • Ownership must be transferred in the REC Registry.
  • The owner of the LGCs may sell or surrender their certificates as they wish. 

Why buy LGCs?

  • To offer for further sale
  • To offer for mandatory surrender
  • To offer for voluntary surrender
  • To encourage generation of renewable electricity

How are LGCs made available for purchase?

  • LGCs are created and registered in the REC Registry.
  • Liable entities can purchase LGCs directly from sellers including renewable energy power stations, registered agents, individual registered persons, or from companies that sell LGCs.
  • Renewable energy power stations and agents usually bundle LGCs together and offer them to liable entities at a negotiated price.

How to buy LGCs

Notes on purchasing LGCs

  • There is no set price for LGCs, although there will be a current market price, which varies according to demand.
  • Purchase of LGCs is a contract for the sale of goods.  Ensure there is proper paperwork accompanying the purchase.
  • The Clean Energy Regulator does not set the price of LGCs and does not get involved in disputes between buyers and sellers.
  • You must have a current REC Registry account to purchase LGCs.
  • LGCs are transferred from your seller to you via the REC Registry.
  • Payment is made as negotiated between buyer and seller.  The REC Registry does not manage payment for LGCs.

Process

  1. Find a seller who has the quantities of LGCs you need.
  2. Negotiate quantity, price and payment method with your seller. 
  3. Organise payment to the seller.
  4. The seller will transfer the negotiated quantity of LGCs to your nominated REC Registry account.
  5. To accept the transfer, log in to the REC Registry with your usual username and password.
  6. Your Account Summary will display a new Incoming Offer:

  7. Click on the number next to “Incoming Offers”.  The “My Incoming REC Transfers” screen will display:

  8. To accept the incoming transfer, click the checkbox next to the Transfer ID you wish to accept, enter a note for the seller if you wish, and click “Accept Selected Transfer/s”.
  9. You will be asked to confirm the acceptance:

  10. Click “Confirm”.
  11. The transfer will be accepted and you will be returned to the “Account Summary” screen with confirmation of the transfer:

Note that the REC Registry does not process payments for transfers of LGCs.  You must organise payment for the LGCs directly with your seller.

Date last updated: 23 Mar 2012