The Clearing House is a two-sided market. Sellers list certificates at $40 ex GST and buyers purchase from the list. The Clean Energy Regulator says anyone with a registered person or registered agent account in the REC Registry can buy.
Who buys
In practice the buyers are almost entirely liable entities and the traders who supply them. Electricity retailers must surrender STCs to the regulator every quarter to cover the small-scale obligation, so they need a steady supply. A household has no use for an STC and no reason to buy one. We list the main categories in who buys STCs.
How a purchase works
A buyer needs a REC Registry account with Clearing House access, and a funded Clearing House account for payment. The buyer places an order to purchase at the fixed $40. The registry then matches the order against the transfer list, taking certificates first in, first out. The regulator confirms that buyers and sellers make and receive payments through the Clearing House accounts.
Because the price is fixed, there is nothing to negotiate. The only variable is how many certificates are on the list when you place your order.
Why most buyers prefer other sources
Buying at $40 from the Clearing House is the most expensive way to acquire certificates when the spot market trades under $40. A buyer who is happy to arrange bilateral purchases from traders or large installers will usually pay less. At the time of writing the STC spot market has been roughly $38 to $40, so the discount is modest, but across millions of certificates it adds up. For that reason the Clearing House works as the ceiling on what buyers pay and as a sale price of last resort for sellers.
Buying versus the surrender deadline
Retailers have to hold enough certificates to meet each quarterly surrender, and the Clearing House is the one place they can always buy a known quantity at a known price if the open market is thin. We explain the cycle and the penalty for falling short in how liable entities surrender STCs and the shortfall charge.
What this means for installers
You do not need to buy STCs. You do need to understand that the buyer on the far side has a $40 alternative, and that explains why trader rates cluster just beneath it. See today’s published rate on the pricing page, and how STC trading works for the full path from claim to settlement.