How your large business can benefit from lower LGC prices

Since mid-2025, Large-Scale Generation Certificates (LGCs) have seen a consistent downward trend in price, according to data from the Clean Energy Regulator (CER).

Voluntary surrender of LGCs is also at an all-time high. Shell Energy’s Renewable Energy Contracting Options (RECO) tool can help businesses take advantage of lower LGC prices.

Why have LGC prices been so low?

The main driver of lower LGC spot prices has been sustained investment in renewable energy like wind and solar farms, which has led to an increase in LGC creation and a surplus of LGCs in the market.

Large-scale Generation Certificate (LGC) reported spot and forward prices. Source: Clean Energy Regulator

Environmental certificates are bought, sold and traded via an online registry. When more LGCs are created in the market than are needed for surrender to meet mandatory obligations under the Large-scale Renewable Energy Target (LRET) scheme, or voluntary purchases, the excess remains in the registry. Surplus certificates can be carried forward for future use or traded in the secondary, voluntary market.

How could my business benefit if lower prices continue?

Businesses with renewable energy requirements may benefit by purchasing more LGCs at lower prices.

RECO is Shell Energy’s online tool that enables strategy-driven LGC purchasing aligned with business requirements and market opportunities.

RECO enables your business to purchase renewable energy by either:

• Agreeing to a RECO price and percentage of LGCs up-front
• Progressively purchase LGCs via our secure, online Shell Energy Portal.

When a RECO purchase is made, Shell Energy matches the agreed percentage of actual consumption with LGCs from accredited renewable generators and surrenders them on the customer’s behalf.

RECO also allows businesses to source LGCs from specific states or individual wind and solar farms, supporting local renewable energy development.

Get started with RECO today

Explore how RECO can simplify the purchase of renewable energy for your business. Shell Energy’s Account Management team can help guide the onboarding process.