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A Guide to Large-scale Generation Certificates (LGCs) for Businesses

A Guide to Large-scale Generation Certificates (LGCs) for Businesses

As the global drive towards sustainable and eco-friendly practices becomes increasingly prominent, the role of businesses in shaping a greener future is more crucial than ever. In Australia’s dynamic energy sector, a tool has emerged to encourage businesses to reduce their carbon footprint and expand their renewable energy sources.

Large-scale Generation Certificates (LGCs) are what businesses need when approaching energy consumption. In fact, LGCs are expected to increase by 7-14% yearly due to the number of businesses investing in energy-efficient products.  

Keep reading to learn more about Large-Scale Generation Certificates, their importance for energy consumption, and their benefits for businesses. 

Understanding Large-scale Generation Certificates (LGCs)

Large-scale Generation Certificates (LGCs) represent a measurement unit that quantifies renewable energy production from eligible sources. These sources comprise solar, wind, hydro, and biomass power generation. For every 1 megawatt-hour (MWh) of electricity generated from a renewable energy source earns one LGC. 

These certificates will exist under the Renewable Energy Target (RET) scheme beyond 2030 to support Australia’s energy transformation, meaning businesses can achieve reduced greenhouse gas emissions

Renewable energy generation contributes to a more sustainable energy mix and creates LGCs, which businesses can trade on the open market. This trading creates a financial incentive for businesses and energy generators to invest in. 

The Importance of LGCs in Australia's Energy Sector

Australia’s energy landscape is driven by the urgent need to reduce greenhouse gas emissions, making Large-scale Generation Certificates essential for this country’s energy sector. The effects coal-fired power plants and fossil fuels have on the environment are detrimental, which leads to the adoption of renewable energy sources. Some of these sources include solar, wind, and hydroelectric power. 

LGCs are important for businesses with a legal obligation to offset their carbon emissions. When a renewable energy generator produces electricity, it generates both electricity and an equivalent number of LGCs. These certificates also contribute to a substantial shift in Australia’s energy mix, as businesses and energy providers can invest in renewable energy projects to generate LGCs. 

One of the main benefits of LGCs is their contribution to lowering Australia’s carbon footprint. In turn, greenhouse gas emissions are reduced due to decreased fossil fuels, leading to a more sustainable future. Australia can continue to meet international climate targets while investing in renewable energy technologies, such as solar panels, wind turbines, hydroelectric power, and heating, ventilation, and air conditioning (HVAC) systems.

Benefits of LGCs for Businesses

Large-scale Generation Certificates are powerful tools that contribute to a greener planet and offer various benefits for businesses. Renewable energy generation is at the heart of LGCs, with each certificate created per megawatt-hour (MWh) of eligible electricity generated by an eligible power station. 

Learn more about the benefits of LGCs below.

Fulfilling Sustainability Goals

As businesses strive to demonstrate their commitment to environmental responsibility, LGCs provide a simple way to support renewable energy projects. Purchasing or generating these certificates contributes to the growth of clean energy sources, reducing a business’s carbon footprint and helping its transition into a sustainable operation.

Enhancing Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) refers to a business’s ethical and responsible behaviour toward society. This voluntary commitment ensures the positive well-being of communities, the environment, and stakeholders.

Consumers are not just interested in products and services; they also evaluate the social and environmental impact of a business. Investing in LGCs sends a powerful message about the business’s dedication to corporate social responsibility. By aligning with renewable energy initiatives, businesses can attract environmentally conscious consumers. 

In fact, 87% of the Australian public believe that businesses have a responsibility to do social and environmental good.

Cost Savings and Predictable Energy Costs

Integrating LGCs into an energy portfolio can lead to long-term cost savings. With traditional energy prices being subject to fluctuations, renewable energy sources can offer more stable and predictable energy costs over time. Businesses can benefit from better financial planning and budgeting. 

Increasing Energy Independence

Businesses can reduce their dependence on fossil fuels and the traditional energy grid when participating in the LGC market. This increased energy independence offers resilience against supply distributions and price spikes that can impact businesses during unstable energy production. A business can feel more secure using energy-efficient products like commercial LED lighting and solar panels. 

Strengthening Brand Reputation

Consumers are more likely to choose brands that align with their values. Businesses integrating LGCs into their energy strategies can stand out among competitors by proving their commitment to sustainable practices. 

This commitment attracts new consumers and creates a positive brand message that leads to increased customer loyalty and brand advocacy.

Access to Government Incentives and Support

Governments usually offer incentives, grants, and tax benefits to businesses that are transitioning to renewable energy sources. Businesses can use these programs to reduce their operational costs associated with renewable energy adoption.

Some government schemes and incentives include:

How Businesses Can Get Involved with LGCs

Businesses play a crucial role in driving renewable energy to create a sustainable future. Below are ways your business can get involved with LGCs to earn more energy-efficient products like heat pumps, solar panels, and LED lighting. 

  1. Evaluate your energy consumption to understand your energy needs and peak demand periods.
  2. Explore renewable options like solar, wind, hydroelectric, and biomass that align with your business’s requirements.
  3. Consider on-site generation to reduce your reliance on conventional energy sources.
  4. Partner with renewable energy developers in large-scale projects.
  5. Register with the Clean Energy Regulator to ensure your LGCs are recognised.
  6. Purchase or generate LGCs through renewable energy initiatives. 


Embracing Large-scale Generation Certificates empowers businesses to drive renewable energy adoption. LGCs are created depending on the amount of eligible electricity generated by reliable power stations. By participating in the LGC market, businesses can strengthen their sustainable practices and enhance their brand reputation. 

The Clean Energy Regulator is also helpful for understanding LGCs. This government agency has an emissions and energy reporting system for businesses to use upon signing up.  

For more information on these certifications for renewable energy, contact Ecosaver today to talk to an expert. 

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