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What are the penalties for battery STC fraud?

Short answer

Penalties range from rejected claims and clawed-back STCs to suspension of registered-person status, loss of installer accreditation, civil penalties and criminal prosecution. The CER can act years after the claim. The exact penalties are set in the legislation.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026 · For installers

The Cheaper Home Batteries Program attracted money and volume quickly, and regulators noticed. The Clean Energy Regulator (CER) tightened battery evidence rules from 1 March 2026 specifically because photos and serials are the main fraud control. This page describes the types of consequence; for specific penalty amounts, read the Renewable Energy (Electricity) Act 2000 and the CER’s own guidance, which we do not paraphrase into numbers here.

The enforcement ladder

Consequence What it looks like
Claim rejected STCs not created because evidence fails validation
STCs taken back Certificates the CER can require to be surrendered or replaced
Registered-person action Conditions, suspension or cancellation of the registry account
Accreditation action CEC removing battery or solar accreditation
Civil penalties Financial penalties under the Act
Criminal prosecution For deliberate false claims, under the Act or the Criminal Code

Clawback is worth understanding on its own because it can reach back through the supply chain. If STCs are later found invalid, the person who created them and the party that sold them on may both face adjustments; see STC clawback.

What the CER looks for

Typical fraud patterns include claims for batteries that were never installed, the same photos reused on several jobs, inflated usable capacity, ineligible models, batteries not VPP-capable, installers who are not accredited, and installation dates shifted to fit a deadline or a higher factor. With the factor stepping from 6.8 now to 5.7 on 1 January 2027, the incentive to backdate is obvious, and so is the scrutiny of dates.

Who is exposed

The person who creates the STCs carries the primary exposure, but the chain does not stop there. A buyer that purchased certificates which turn out to be invalid can face adjustments, and an installer’s accreditation can be reviewed by the Clean Energy Council. Employees who directed or knew of false claims are not protected by the business structure. Regulators have also said they look at patterns across many jobs, so a single odd claim is less likely to trigger action than a repeated error that suggests a process problem.

What this means for installers

Honest errors are common and fixable. Intent is what turns an error into fraud. Protect yourself by keeping a job file with photos taken on site, serials captured in the field, the signed assignment form, the electrical certificate and the invoice, all agreeing with each other. How STC audits work explains what an audit pulls, and avoiding STC fraud covers the solar side.

From the desk: if you spot a mistake after lodging, tell your trader and the CER promptly. A self-reported correction is treated very differently from a defect an auditor finds.

It also pays to sell to a buyer that checks claims before lodgement. The compliance desk at Energy Merchants pre-checks photos, forms and serials so problems are caught early; see how it works. For the wider rules, start from battery STCs, and see top STC claim rejection reasons.

Follow-up questions

People also ask

Who investigates battery STC claims?
The Clean Energy Regulator, which audits claims and can inspect installations. The Clean Energy Council can also act on accreditation.
What counts as fraud rather than a mistake?
Claiming for batteries not installed, using photos from another job, overstating capacity or backdating are the classic cases. Honest errors are usually handled as compliance issues.

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