Australia Renewable Energy Act: Sections 17 & 18 LGC Guide
Updated 6 September 2026 · By SolarNevs Research Desk, Dealer surveys + verified sources · 1 source · Method ↗
Key Takeaways
- Section 17 of the Renewable Energy (Electricity) Act 2000 defines solar as an eligible renewable energy source for certificate generation.
- Strictly excludes fossil fuels and fossil fuel-derived materials from qualifying as renewable energy sources.
- Codifies two distinct certificate classes under Section 17B: Large-scale Generation Certificates (LGCs) and Small-scale Technology Certificates (STCs).
- Section 18 authorizes accredited power stations to create LGCs for electricity generated above baseline.
- Mandates the lodgement of an annual electricity generation return under Section 20 for all accredited facilities.
Statutory Purpose of Sections 17, 17B, 18, and 20
Under the Renewable Energy (Electricity) Act 2000 (Cth), Part 2 sets the foundation for Australia's Large-scale Renewable Energy Target (LRET).
The legislation creates a market-based incentive where accredited power stations produce Large-scale Generation Certificates (LGCs), with 1 MWh of eligible generation yielding 1 LGC.
LGC Generation & Power Station Accreditation Matrix
Statutory compliance for utility solar farms operates under defined provisions:
Statutory Mechanism | Legislative Provision | Regulatory Requirement for Solar Generators |
|---|---|---|
Eligible Energy Sources | Section 17(1)(f) Solar is an eligible renewable energy source | Qualifies ground-mounted and utility PV systems for certificate creation |
Fossil Fuel Prohibition | Section 17(2)(a) Fossil fuels are not eligible energy sources | Disqualifies hybrid generation relying on unapproved fossil fuel co-firing |
Certificate Classification | Section 17B Large-scale generation certificates and STCs | Establishes the dual LRET and SRES compliance frameworks |
Certificate Creation | Section 18 Creating certificates for additional renewable electricity | Governs 1 MWh per certificate creation above the 1997 baseline |
Creation Timing | Section 19 When certificates may be created | Sets strict calendar creation windows within the Clean Energy Regulator REC Registry |
Generation Reporting | Section 20 Electricity generation return | Requires audited annual generation data submission by nominated persons |
Commercial Steps for Utility Solar LGC Compliance
To ensure compliance under Sections 17 and 18:
- Secure Power Station Accreditation: Apply for Clean Energy Regulator accreditation under Section 13 prior to commercial grid export.
- Calculate Baseline Generation: For expanded or repowered installations, calculate baseline generation under Section 18 formulas to ensure LGCs reflect net additions.
- Lodge Section 20 Generation Returns: Submit audited meter data via the REC Registry annually to substantiate all created certificates.
Frequently asked questions
Is solar energy an eligible renewable energy source under Section 17?
Under Section 17(1)(f), solar is explicitly designated as an eligible renewable energy source for renewable energy certificate creation (August 2026).
Are fossil fuel sources eligible for certificate creation under Section 17(2)?
Under Section 17(2), fossil fuels and materials or waste products derived from fossil fuels are strictly not eligible renewable energy sources (August 2026).
What are the two types of renewable energy certificates under Section 17B?
Under Section 17B, there are 2 types: large-scale generation certificates (LGCs) for accredited power stations and small-scale technology certificates (STCs) (August 2026).
What annual reporting is required for accredited power stations under Section 20?
Under Section 20, an electricity generation return must be submitted annually to the Clean Energy Regulator for each accredited power station (August 2026).
References
- Federal Register of Legislation: Renewable Energy (Electricity) Act 2000 — accessed 31 August 2026
Related guides
More from schemes, subsidies & financing.